Vienna, Austria - September 4,2011: Shopper walks past Forever 21 store on September 4,2011 in Vienna. Forever 21 fashion label has 480 stores worldwide and had USD 2.6 bn revenue in 2011.
NEW YORK: Forever 21 Inc filed for bankruptcy protection, the latest big fashion merchant who couldn’t cope with high rents and heavy competition as the shift to e-commerce cut a swathe through traditional retailers.
Court papers filed in Wilmington, Delaware, show Forever 21 has estimated liabilities on a consolidated basis of between US$1bil and US$10bil. The Chapter 11 filing allows the Los Angeles-based company to keep operating while it works out a plan to pay its creditors and turn around the business.
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