Forever 21’s history as it went from success to bankruptcy

Once a hot spot for teen clothing, Forever 21 has filed for Chapter 11 bankruptcy protection.

But before its struggles, Forever 21 seemed unstoppable.

The company was founded by husband-and-wife duo Jin Sook and Do Won “Don” Chang after they emigrated from South Korea to Los Angeles in 1981. The pair opened their first store, then called Fashion 21, in 1984 and pulled in $700,000 worth of sales in the first year.

The retailer thrived through the early 2000s, eventually peaking in 2015 when its founders were worth a record high of $5.9 billion combined, Forbes reported. Today, Forbes estimates that the cofounders are no longer billionaires.

On Sunday, Forever 21 announced its bankruptcy filing in a letter to shoppers, writing: “Once we complete a reorganization, Forever 21 will be a stronger, more viable company that is better positioned to prosper for years to come. We look forward to continuing to provide you with the great service and curated assortment of merchandise that you expect from us.”

A representative for the company told Business Insider in a statement that the company planned to close most of its locations in Asia and Europe but to continue operations in the US, Mexico, and Latin America. The New York Times reported that Forever 21 would close up to 178 stores in the US and up to 350 globally.

Here’s the story of the company, from its quick rise to global prominence to its slow downfall into uncertainty.