When a retailer goes bankrupt, it causes a problem for its landlord. In many cases a chain will be behind on its rent with no plan to pay that money. A Chapter 11 bankruptcy can forestall closing the store by giving it time to conduct a going-out-of-business sale.

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.

Forever 21 is filing for Chapter 11 bankruptcy and is closing down all of its U.S. stores, including 15 locations in New Jersey