Forever 21 may be closing its operations in the United States as its operating company files for bankruptcy protection.

The company stated that its stores and website in the US will remain open, but it will begin the process of winding down.

Forever 21 used to be a favorite among young women worldwide, but it has struggled to attract customers due to increasing costs and the rise of online shopping.

The company filed for bankruptcy protection for the first time in 2019, but a group of investors acquired it through a joint venture.

“We have failed to find a sustainable path forward due to competition from foreign fast-fashion companies and rising costs that affect our core customers,” said Brad Sell, the company’s chief financial officer.

The firm will conduct liquidation sales at its stores and some or all of its assets will be sold through a court-supervised process.

If the sale is successful, the company may choose not to fully wind down its operations.

Chapter 11 protection allows a US company to postpone its obligations to creditors, providing time to reorganize debts or sell parts of the business.

Forever 21’s shops and e-commerce platforms outside of the US are operated by license-holders and will not be affected by the bankruptcy protection filing.

The fast-fashion retailer was founded in Los Angeles in 1984 by South Korean immigrants.

Over the following decades, its affordable and trendy clothes and accessories gained popularity among young people, making it a competitor to fast-fashion giants like Zara and H&M.

In 2016, Forever 21 had 800 shops worldwide, with 500 located in the United States.