Forever 21 Preference Lawsuits by Industry: What Suppliers, Logistics, Marketing and Service Vendors Should Know

Quick Answer

The Forever 21 preference lawsuits are not limited to clothing suppliers. The Plan Administrator for F21 OpCo, LLC has sued apparel and accessory wholesalers, overseas factories, trucking and logistics companies, marketing and model agencies, technology providers, and facilities contractors in the U.S. Bankruptcy Court for the District of Delaware. The same legal defenses apply to every industry, but which records matter most, and which defenses are strongest, depends on the kind of goods or services the vendor provided.

Who Is Being Sued and Why

Steven Balasiano of MHR Advisory Group, LLC, as Plan Administrator, has filed more than 130 preference lawsuits under In re F21 OpCo, LLC, Case No. 25-10469 (MFW). Each lawsuit seeks to recover payments Forever 21 made to the vendor between December 16, 2024 and March 16, 2025, the 90 days before its Chapter 11 filing.

A vendor does not have to have done anything wrong to be sued. A preference claim is based on the timing of the payment, not on misconduct. Every company that Forever 21 paid on older invoices during those 90 days is a potential target.

Apparel, Footwear and Accessories Suppliers

Merchandise vendors make up the largest group of defendants. Many shipped regularly to Forever 21 on standard trade terms for years.

• Why the claims can be large: Merchandise payments were frequent and often substantial in the months before the bankruptcy.
• Defenses that often matter: Subsequent new value for goods shipped after a payment and not paid for, and ordinary course for payments made on the vendor’s usual terms.
• Records that matter most: Purchase orders, invoices, shipping and delivery records, and a payment history going back at least two years.

Overseas Factories and Trading Companies

About 50 of the lawsuits name companies that appear to be based outside the United States, including garment makers in mainland China, Hong Kong trading companies, and suppliers elsewhere in Asia and the Middle East.

• Why they are sued: Forever 21 paid overseas suppliers by international wire during the preference period, and those payments are treated the same as payments to U.S. vendors.
• Defenses that often matter: The same defenses available to U.S. vendors, plus arguments specific to overseas sourcing, such as payments made through letters of credit, deposits paid before production, or trading companies acting only as agents for a factory.
• Procedural issues: Whether mail service was valid under international rules such as the Hague Service Convention, which must be raised in the first response or it is waived.
• The risk of ignoring the case: A default judgment can be enforced against U.S. bank accounts, money owed by U.S. customers, and future U.S. bankruptcy distributions.

Trucking, Freight and Logistics Companies

Carriers, freight forwarders, customs brokers and warehouse operators kept Forever 21’s inventory moving until the stores closed.

• Why they are sued: Logistics vendors were often paid weekly or on short cycles, creating many payments in the 90-day window.
• Defenses that often matter: Ordinary course, because freight payment patterns are often consistent over time, and new value for loads moved after a payment and not paid for.
• Records that matter most: Freight bills, bills of lading, proof of delivery, rate agreements and remittance records.

Marketing, Advertising, Model and Media Agencies

Agencies that provided campaigns, photo shoots, influencer programs and media buying are among the defendants.

• Why they are sued: Agencies were often paid on retainers or project milestones, and some received large catch-up payments as Forever 21’s finances tightened.
• Defenses that often matter: New value for services performed after a payment, and contemporaneous exchange where payment was required before work began.
• A special issue: Agencies that passed media or talent fees on to third parties should document which money was a pass-through.

Technology, Software and Payment Providers

Software platforms, e-commerce tools, IT contractors and payment service providers supported Forever 21’s stores and website.

• Why they are sued: Subscription and usage invoices produced recurring payments during the preference period.
• Defenses that often matter: Ordinary course for recurring subscription payments made on regular terms, and new value for services provided after a payment.
• Records that matter most: Master service agreements, order forms, usage logs and billing history.

Facilities Contractors and Landlords

HVAC, mechanical, maintenance and construction contractors, along with some property owners, have also been named.

• Why they are sued: Contractors and landlords received payments for work orders, rent or charges during the 90 days.
• Defenses that often matter: New value for work performed after a payment, and, for contractors, any lien rights or bonding that may affect the analysis.
• Records that matter most: Work orders, completion records, lease terms and payment ledgers.

What Every Industry Has in Common

Whatever your industry, the outcome of a Forever 21 preference lawsuit depends on three things:

1. Responding on time. The answer is generally due 30 days after the summons was issued, not after it arrived. Most deadlines fall in early to mid November 2026.
2. Proving defenses. The amount on Exhibit A does not subtract defenses. The vendor must raise and prove them.
3. Preserving records. Keep invoices, payment records, shipping or service records and all communications with Forever 21 from late 2024 and early 2025.

Frequently Asked Questions

What kinds of companies are being sued in the Forever 21 bankruptcy?
Apparel and accessory suppliers, overseas factories and trading companies, trucking and logistics firms, marketing and model agencies, technology providers, facilities contractors and some landlords.

Can a trucking or logistics company be sued for Forever 21 preference payments?
Yes. Payments for freight, warehousing and logistics services made during the preference period can be targeted like any other payment.

Are overseas suppliers being sued?
Yes. About 50 of the lawsuits name companies that appear to be based outside the United States, and they have the same defenses as U.S. vendors.

Does my industry change which defenses I can use?
The legal defenses are the same for every vendor, but the strongest defense and the most important records often depend on the vendor’s industry and payment pattern.

I provided services, not goods. Can I still use the new value defense?
Yes. Services provided after a payment can count as new value, just as goods can.

Talk to Kasen Law Group About Your Forever 21 Preference Claim

Kasen Law Group defends U.S. and foreign vendors in every industry in preference lawsuits in the Delaware Bankruptcy Court. We have resolved 75 preference and fraudulent transfer matters with an average claim reduction of 90.8%, many in retail bankruptcies such as Rite Aid, Bed Bath & Beyond and Charming Charlie.

Call (888) 959-8220 for a free consultation, or contact us online. Learn more about our bankruptcy litigation practice.

This article is general information about bankruptcy law and is not legal advice. Prior results do not guarantee a similar outcome. Jenny R. Kasen is admitted to practice before the United States Bankruptcy Courts for the District of Delaware, the District of New Jersey, the Eastern District of Pennsylvania, and the Southern District of Florida.