Quick Answer
The Plan Administrator for F21 OpCo, LLC (Forever 21) has filed more than 130 preference lawsuits in the U.S. Bankruptcy Court for the District of Delaware against vendors that Forever 21 paid between December 16, 2024 and March 16, 2025. The lawsuits target U.S. and foreign suppliers alike. A company that was sued generally must respond through a lawyer within 30 days after the summons was issued, and many of those deadlines fall in November 2026. The amount demanded is usually not what a vendor ends up owing, because the law gives vendors defenses that can reduce or eliminate the claim.
Forever 21 Preference Lawsuits at a Glance
| Question | Answer |
| Bankruptcy case | In re F21 OpCo, LLC, et al., Case No. 25-10469 (MFW) |
| Court | U.S. Bankruptcy Court for the District of Delaware, Wilmington |
| Judge | Hon. Mary F. Walrath |
| Bankruptcy filed | March 16, 2025 (Chapter 11) |
| Payments at risk | Payments made December 16, 2024 – March 16, 2025 |
| Who is suing | Steven Balasiano of MHR Advisory Group, LLC, as Plan Administrator |
| Plaintiff’s lawyers | ASK LLP and Benesch Friedlander Coplan & Aronoff LLP |
| Demand letters | Sent around January 26, 2026 |
| Lawsuits filed | Beginning October 2, 2026; more than 130 so far |
| Answer deadline | Generally 30 days after the summons was issued |
| First pretrial conferences | December 8, 2026 |
| Who is being sued | U.S. and foreign vendors in many industries |
What Is a Forever 21 Preference Lawsuit?
A preference lawsuit asks a vendor to return payments it received from a company in the 90 days before that company filed for bankruptcy. The idea behind the law is that a failing company should not be able to pay some creditors ahead of others just before it files.
In the Forever 21 case, each lawsuit is a separate adversary proceeding filed inside the main bankruptcy case. The complaints seek to recover payments under 11 U.S.C. § 547, plead fraudulent transfer under § 548 as an alternative, seek recovery under § 550, and ask the court to disallow the vendor’s own claims against Forever 21 under § 502(d) until the vendor pays.
A vendor does not have to have done anything wrong to be sued. These claims are based on the timing of payments, not on misconduct.
How We Got Here: The Second Forever 21 Bankruptcy
F21 OpCo, LLC, which operated Forever 21’s U.S. stores, filed Chapter 11 in Delaware on March 16, 2025, with two affiliated debtors. It was the brand’s second U.S. bankruptcy; Judge Walrath also presided over the first, in 2019.
The company closed and liquidated its U.S. stores. Its liquidating plan was confirmed on June 24, 2025 and became effective on June 30, 2025. Under the plan, the right to sue vendors to recover preference payments passed to the Plan Administrator, who sent demand letters in January 2026 and began filing lawsuits in October 2026.
Who Is Being Sued
The defendants are businesses Forever 21 paid in its last months before bankruptcy, including:
- Apparel, footwear and accessories wholesalers
- Overseas factories and trading companies
- Trucking, freight and logistics companies
- Marketing, advertising and model agencies
- Technology, software and payment providers
- HVAC, maintenance and facilities contractors, and some landlords
For a closer look at how these claims affect each kind of business, see our guide to Forever 21 preference lawsuits by industry.
Foreign Vendors Are Being Sued Too
About 50 of the Forever 21 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. Foreign vendors should understand five points.
- A U.S. court can enter judgment against a foreign company. If a foreign vendor does not respond, the Plan Administrator can seek a default judgment for the full amount, plus interest and costs.
- The judgment can follow the vendor’s U.S. business. It can be enforced against U.S. bank accounts, money owed by U.S. customers, and future U.S. bankruptcy distributions.
- Service by mail may be open to challenge. Whether it is valid depends on international rules such as the Hague Service Convention, but the objection must be raised in the vendor’s first response or it is lost.
- The same defenses apply. Foreign vendors can use every defense available to U.S. vendors, and arrangements common in overseas sourcing, such as letters of credit, deposits and buying agents, can add arguments.
- Travel is usually unnecessary. These cases are mostly handled through written exchanges and remote proceedings.
The Deadline to Respond
The answer is generally due 30 days after the Delaware court issued the summons, not 30 days after the papers arrived. Because mail takes time, especially overseas, many vendors have much less than 30 days in practice. Many deadlines in the first wave of cases fall in November 2026.
A company must respond through a lawyer admitted in Delaware or working with Delaware counsel. A letter from an owner or finance manager to the court is not a response.
If your deadline has already passed, act today. A default may not yet have been entered, and even if it has, there may be options. Waiting makes every option harder and more expensive.
How Vendors Defend Forever 21 Preference Claims
The amount on the complaint’s Exhibit A is the total of the payments the vendor received. It does not subtract the vendor’s defenses, which the vendor must raise and prove. The main defenses are:
- Subsequent new value. Credit for goods or services provided to Forever 21 after a payment and not paid for.
- Ordinary course of business. Protection for payments made on the vendor’s normal terms with Forever 21 or normal industry terms.
- Contemporaneous exchange. Protection for prepaid, deposit or COD transactions.
- The plaintiff’s due diligence duty. The plaintiff must consider known defenses before suing.
- Payments not made with Forever 21’s property. Payments by a factor, letter of credit bank, parent company or other third party may fall outside the statute.
Which defenses apply, and how much they are worth, depends on each vendor’s records and is best evaluated by counsel.
What Happens to Money Forever 21 Still Owes You
Many sued vendors were also left with unpaid Forever 21 invoices. Those unpaid invoices do not automatically cancel out a preference claim, and the complaint asks the court to block distributions on the vendor’s claim until the preference is repaid. Unpaid invoices can, however, be important evidence for the vendor’s defenses, so they should be reviewed together with the lawsuit.
What to Do Now
- Find the summons and note the date it was issued and your adversary number, which begins with 26-50.
- Send the summons, complaint and Exhibit A to a Delaware-admitted bankruptcy attorney right away.
- Preserve Forever 21 purchase orders, invoices, payment records, shipping or service records and communications from late 2024 and early 2025.
- Gather any factoring agreements, credit insurance policies or letters of credit tied to Forever 21 payments, and notify your factor or insurer.
- Do not call plaintiff’s counsel, pay the demand or sign anything until your defenses have been reviewed.
Why Vendors Choose Kasen Law Group
Kasen Law Group is a bankruptcy law firm that defends U.S. and foreign vendors in preference and fraudulent transfer lawsuits.
- Proven results. We have resolved 79 preference and fraudulent transfer matters, reducing $13,968,865.93 in total claims to $1,055,323.52, an average claim reduction of 92.4%.
- Retail bankruptcy experience. Our matters include preference cases arising from retail bankruptcies such as Rite Aid, Bed Bath & Beyond and Charming Charlie.
- Delaware admission. Founding attorney Jenny R. Kasen is admitted in the U.S. Bankruptcy Court for the District of Delaware, so vendors do not need to hire separate local counsel.
- Experience with overseas clients. We represent foreign suppliers and trading companies and handle these cases remotely.
Frequently Asked Questions
What is the Forever 21 preference lawsuit?
It is a group of more than 130 lawsuits filed by the Plan Administrator for F21 OpCo, LLC in the U.S. Bankruptcy Court for the District of Delaware, seeking to recover payments Forever 21 made to vendors between December 16, 2024 and March 16, 2025.
Who is suing Forever 21 vendors?
Steven Balasiano of MHR Advisory Group, LLC, as Plan Administrator for F21 OpCo, LLC, represented by ASK LLP and Benesch Friedlander Coplan & Aronoff LLP.
What is the Forever 21 bankruptcy case number?
In re F21 OpCo, LLC, et al., Case No. 25-10469 (MFW), in the U.S. Bankruptcy Court for the District of Delaware.
How long do I have to respond?
Generally 30 days after the summons was issued, not after it was received. Many deadlines fall in November 2026.
Can foreign companies be sued in the Forever 21 bankruptcy?
Yes. About 50 of the lawsuits name companies that appear to be based outside the United States, and a default judgment can be enforced against their U.S. accounts and receivables.
Do I have to pay the full amount demanded?
Usually not. The demand does not account for defenses such as new value and ordinary course, which often reduce preference claims substantially.
I received a demand letter but no lawsuit. Am I safe?
Not necessarily. Preference lawsuits generally can be filed until two years after the bankruptcy filing, so more cases may be filed before March 2027.
I missed my deadline. What now?
Contact a Delaware bankruptcy attorney immediately. A default may not yet have been entered, and there may still be ways to protect your company.
Our Results: 79 Preference and Fraudulent Transfer Matters Settled
These are actual preference and fraudulent transfer claims we have resolved for defendants. On average, our clients paid 7.6 cents for every dollar demanded.
| Summary | |
| Matters settled | 79 |
| Total claims asserted | $13,968,865.93 |
| Total settlements paid | $1,055,323.52 |
| Total saved for clients | $12,913,542.41 |
| Average settlement paid per dollar demanded | 7.6% |
| Average claim reduction | 92.4% |
Details of Settled Matters
| Claim Amount | Settled For | Percentage | Bankruptcy Case | Industry |
| $2,728,910.00 | $8,000.00 | <1% | Purekana, LLC | Retail |
| $1,702,988.87 | $1,000.00 | <1% | Rite Aid Corporation | Retail |
| $1,018,925.76 | $5,000.00 | <1% | Bed Bath & Beyond, Inc. | Retail |
| $678,363.68 | $28,000.00 | 4% | Bed Bath & Beyond, Inc. | Retail |
| $440,690.49 | $53,000.00 | 12% | Rite Aid Corporation | Retail |
| $374,905.00 | $7,500.00 | 2% | Rite Aid Corporation | Retail |
| $362,952.00 | $3,000.00 | <1% | Virgin Orbit, LLC | Aerospace |
| $337,955.09 | $2,500.00 | <1% | Yellow Corporation | Transportation |
| $327,217.63 | $40,000.00 | 12% | Deb Stores Holding LLC | Retail |
| $295,887.08 | $37,000.00 | 13% | NSC Wholesale Holdings, LLC | Retail |
| $292,633.33 | $51,979.00 | 18% | AB Technologies LLC | Tech |
| $263,391.72 | $130,000.00 | 49% | Bed Bath & Beyond, Inc. | Retail |
| $248,766.84 | $10,000.00 | 4% | Deb Stores Holding LLC | Retail |
| $247,673.19 | $40,000.00 | 16% | Hollister Construction Services, LLC | Construction |
| $230,000.00 | $6,000.00 | 3% | Bed Bath & Beyond, Inc. | Retail |
| $220,312.50 | $90,000.00 | 41% | Mallinckrodt PLC | Pharmaceutical |
| $216,588.19 | $20,000.00 | 9% | Medley Health, Inc. et al. | Healthcare |
| $212,159.37 | $1,500.00 | <1% | Rite Aid Corporation | Retail |
| $206,718.28 | $10,000.00 | 5% | Tritek International Inc. | Food |
| $187,704.38 | $15,000.00 | 8% | Rite Aid Corporation | Retail |
| $181,349.11 | $28,000.00 | 15% | Rite Aid Corporation | Retail |
| $163,198.61 | $77,500.00 | 47% | Pipeline Foods, LLC | Agriculture |
| $159,073.89 | $11,000.00 | 7% | Mitchell Gold Co. | Retail |
| $149,371.05 | $2,500.00 | 2% | Williamston Hospital Corporation | Healthcare |
| $126,788.36 | $2,700.00 | 2% | J&M Sales, Inc. | Retail |
| $121,313.87 | $5,000.00 | 4% | Hollister Construction Services, LLC | Construction |
| $116,955.00 | $30,000.00 | 26% | J&M Sales, Inc. | Retail |
| $116,696.21 | $20,000.00 | 17% | JC USA, Inc. | Retail |
| $112,930.65 | $2,500.00 | 2% | Rite Aid Corporation | Retail |
| $112,806.39 | $13,000.00 | 12% | Rite Aid Corporation | Retail |
| $106,907.97 | $3,000.00 | 3% | Taronis Fuels, Inc. | Fuel |
| $105,063.48 | $6,000.00 | 6% | The Mitchell Gold Co., LLC | Retail |
| $95,578.12 | $17,000.00 | 18% | Charming Charlie, LLC | Retail |
| $90,768.30 | $5,000.00 | 6% | Hollister Construction Services, LLC | Construction |
| $87,381.00 | $22,500.00 | 26% | AB Technologies LLC | Tech |
| $85,149.74 | $1,500.00 | 2% | Taronis Fuels, Inc. | Fuel |
| $74,724.89 | $13,000.00 | 17% | Rite Aid Corporation | Retail |
| $64,040.58 | $2,000.00 | 3% | New England Motor Freight, Inc. | Trucking |
| $61,796.34 | $6,000.00 | 10% | AB Technologies LLC | Tech |
| $59,562.90 | $7,500.00 | 13% | ProAir Holdo, LLC | HVAC |
| $59,072.53 | $25,000.00 | 42% | Bed Bath & Beyond, Inc. | Retail |
| $56,607.93 | $26,000.00 | 46% | Direct Buy/Z Gallerie | Retail |
| $52,701.19 | $20,000.00 | 38% | Kline Construction Co. | Construction |
| $49,176.99 | $1,600.00 | 3% | Yellow Corporation | Transportation |
| $47,690.00 | $1,800.00 | 4% | Rite Aid Corporation | Retail |
| $44,324.00 | $3,500.00 | 8% | Samuels Jewelers, Inc. | Retail |
| $44,230.16 | $3,000.00 | 7% | CalPlant I, LLC | Construction |
| $40,477.04 | $1,500.00 | 4% | Erus Builders, Inc. | Construction |
| $40,368.07 | $1,000.00 | 2% | Rite Aid Corporation | Retail |
| $39,015.00 | $5,000.00 | 13% | Hollister Construction Services, LLC | Construction |
| $38,827.66 | $3,000.00 | 8% | Immune Pharmaceuticals, Inc. | Pharmaceutical |
| $34,467.70 | $2,000.00 | 6% | Hygea Health Holdings Inc. | Healthcare |
| $34,271.12 | $2,000.00 | 6% | Clio Holdings, LLC | Stone |
| $33,732.54 | $7,500.00 | 22% | Exide Holdings, Inc. | Battery |
| $32,284.50 | $2,000.00 | 6% | Kranos Corporation | Retail |
| $31,690.00 | $3,000.00 | 9% | Clio Holdings, LLC | Stone |
| $31,318.83 | $7,500.00 | 24% | Port Neches Fuels, LLC | Construction |
| $30,109.87 | $6,500.00 | 22% | Hygea Health Holdings, LLC | Healthcare |
| $29,310.80 | $14,655.40 | 50% | J&M Sales, Inc. | Retail |
| $28,676.69 | $7,000.00 | 24% | Pipeline Foods, LLC | Agriculture |
| $27,525.58 | $4,000.00 | 15% | Art Supply Enterprises, Inc. | Retail |
| $27,314.77 | $3,000.00 | 11% | DirectBuy Home Improvement, Inc. | Retail |
| $27,069.90 | $4,000.00 | 15% | Beef International, Inc. | Food |
| $26,258.68 | $1,000.00 | 4% | DirectBuy Home Improvement, Inc. | Retail |
| $26,152.17 | $4,000.00 | 15% | CalPlant I, LLC | Manufacturing |
| $23,111.40 | $10,000.00 | 43% | Williams Industrial Services Group, Inc. | Construction |
| $22,679.50 | $1,000.00 | 4% | DirectBuy Home Improvement, Inc. | Retail |
| $22,150.24 | $11,075.12 | 50% | J&M Sales, Inc. | Retail |
| $21,828.00 | $10,914.00 | 50% | J&M Sales, Inc. | Retail |
| $21,698.87 | $6,500.00 | 30% | NSC Wholesale Holdings, LLC | Retail |
| $21,651.49 | $5,000.00 | 23% | True Religion Apparel, Inc. | Retail |
| $18,909.75 | $2,000.00 | 11% | DirectBuy Home Improvement, Inc. | Retail |
| $17,320.88 | $3,500.00 | 20% | BSI Operating, LLC | Oil and Gas |
| $16,160.00 | $1,500.00 | 9% | Patriot National, Inc. | Insurance |
| $14,800.62 | $1,600.00 | 11% | Hygea Health Holdings, LLC | Healthcare |
| $14,094.80 | $2,000.00 | 14% | Patriot National, Inc. | Insurance |
| $13,667.70 | $3,000.00 | 22% | Beef International, Inc. | Food |
| $12,919.10 | $1,500.00 | 12% | DTech Liquidating, Inc. | Healthcare |
| $9,000.00 | $1,000.00 | 11% | CalPlant I, LLC | Manufacturing |
Prior results do not guarantee a similar outcome. Every case depends on its own facts.
Talk to Kasen Law Group About Your Forever 21 Preference Lawsuit
If your company received a demand letter or complaint in the Forever 21 bankruptcy, contact us before you respond or pay. We will confirm your deadline, review your Exhibit A and tell you what a realistic outcome looks like.
Call (888) 959-8220 for a free consultation, or contact us online. Learn more about our bankruptcy litigation practice and our representative matters.
This article is general information about bankruptcy law and is not legal advice. Prior results do not guarantee a similar outcome. Deadlines in a specific adversary proceeding are governed by the summons, any court order and the applicable rules. 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.