F21 OpCo, LLC, the company and licensee of the brand in the U.S., filed a Chapter 11 case in the U.S. Bankruptcy Court for the District of Delaware. Although stores will remain open for now, Forever 21, which is headquartered in Los Angeles, said it will hold liquidation sales at its U.S. stores.

The international operations and the intellectual property of the fast-fashion business are not a part of the bankruptcy.

"As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders."