Core Viewpoint - Forever 21 has filed for bankruptcy protection for the second time in six years, indicating ongoing struggles in the fast fashion industry and a significant reduction in its U.S. operations [1][2]. Group 1: Bankruptcy Filing - On October 16, Forever 21's operator submitted a bankruptcy protection application to a Delaware court, with total debts amounting to $1.58 billion [2]. - The company plans to terminate all operations in the U.S., with over 350 stores already beginning clearance sales [2]. - Stores operated by other franchisees outside the U.S. are not included in the bankruptcy plan [2]. Group 2: Previous Bankruptcy and Acquisition - Forever 21 previously filed for bankruptcy protection in 2019 and was acquired by a consortium led by American Brand Management Group (ABG) [2]. - The financial situation improved in the fiscal year 2021, but the positive trend was short-lived [2]. - ABG's CEO stated that acquiring Forever 21 was a mistake, highlighting the brand's unclear positioning and lackluster product marketing [2]. Group 3: Market Challenges - The brand has been increasingly abandoned by younger customers due to its lack of clear identity and product variety [2]. - The rise of e-commerce, persistent high inflation in the U.S., and supply chain challenges have contributed to Forever 21's uncertain future [2].