F21 OpCo, LLC, operating as Forever 21, is a fast fashion retailer founded in 1984 by Do Won Chang and Jin Sook Chang, offering trendy, affordable clothing and accessories primarily targeting young consumers across approximately 354 retail locations with over 9,200 employees. Owned by SPARC Group (a joint venture of Authentic Brands Group, Simon Property Group, and Shein), the Los Angeles-based company filed its second Chapter 11 case ("Chapter 22") on March 16, 2025 in Delaware (Case No. 25-10469) before Judge Mary F. Walrath, following its 2019 bankruptcy and February 2020 going-concern sale. The filing was driven by intense competition from ultra-low-cost foreign e-commerce retailers like Shein and Temu exploiting the de minimis duty-free import exemption, losses exceeding $400 million over three fiscal years, historic inflation increasing inventory/distribution/wage costs, and structural challenges of mall-based retail. At filing, the company carried approximately $1.582 billion in funded debt across a three-tier secured structure: $1.085 billion ABL (Wells Fargo/PNC), $321 million Term Loan (Pathlight Capital), and $176 million Subordinated Loan (Simon). The Debtors operated on cash collateral with no DIP financing, maintaining a $65 million minimum sweep balance. Unable to identify a going-concern buyer, the company liquidated all 354 stores through closing sales. SPARC Group waived 75% of its $323 million intercompany payable as part of a global settlement. The plan was confirmed June 24, 2025 and became effective June 30, 2025 — 106 days from petition to effective date. A partial final decree closed subsidiary cases on December 15, 2025, with general unsecured creditors recovering up to 6% of distributable proceeds.
