Forever 21 files for bankruptcy

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Low-price fashion chain Forever 21, a once-hot destination for teen shoppers that fell victim to its own rapid expansion and changing consumer tastes, has filed for Chapter 11 bankruptcy protection.

The privately held company based in Los Angeles said Sunday it will close up to 178 stores in the United States.

As of the bankruptcy filing, the company operated about 800 stores globally, including more than 500 stores in the U.S.

The company said it would focus on maximising the value of its U.S. stores and shutter certain international locations.

Forever 21 plans to close most of its locations in Asia and Europe but will continue operating in Mexico and Latin America.