News / Forever 21 blames bankruptcy on de minimis exemption

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Forever 21, the US clothing retailer, has gone down shouting: it has squarely blamed its latest Chapter 11 bankruptcy on de minimis exemptions creating unfair competition. 

Owing its transport and logistics providers some $2m, it filed a Chapter 11 petition on Sunday, noting it operates in a “highly competitive retail environment”. 

Stephen Coulombe, the co-chief restructuring officer noted: “The debtors’ business has been materially and negatively impacted by the ability for online retailers to take advantage of the “de minimis exemption” which ...