However, going down the bankruptcy road does not necessarily mean it is all over for the fashion brand.
Struggling to stay afloat, the state of fashion retailer Forever 21 is symptomatic of the US retail landscape.
Several other retailers in the past have been unable to survive the onslaught of e-commerce companies and Forever 21 may just be the next addition to that list.
According to a Bloomberg report, Forever 21 may file for bankruptcy soon.
The report said the retailer had already been looking for additional financing options in an attempt to restructure the company's debt but to no avail.
However, going down the bankruptcy road does not necessarily mean it is all over for the fashion brand. The process often enables retailers to close unprofitable stores and exit lease agreements at relatively lower costs.
The clothing brand had earlier reported that it was actively seeking ways to "revive its business" in the wake of a fund crunch.
Forever 21 makes an estimated $3 billion annually from its sales. Despite an especially large footprint of over 800 stores across the globe, the retailer is one among the many recent victims of online shopping.
Many major retailers filed for bankruptcy, with some even going belly-up, even as online platforms like Amazon saw a boom in their business with constantly rising prices. The list includes big names like Aeropostale, Toys R Us, Nine West, Gymboree, Diesel, Claire's and Kiko USA (subsidiary of Kiko Milano) among others.The brand had made its mark as the go-to place for shoppers to get the best deals while staying in sync with the latest fashion, winning over millennials (young women in particular) with the chic and trendy range of clothing.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.