Forever 21 Preference Claims: What Vendors Need to Know

Quick Answer

On October 2, 2026, the Plan Administrator for F21 OpCo, LLC (Forever 21) began filing preference lawsuits against vendors in the U.S. Bankruptcy Court for the District of Delaware. If Forever 21 paid your company between December 16, 2024 and March 16, 2025, you may be sued to return that money. Strong defenses often cut these claims sharply, and the early weeks matter most.

Forever 21 Preference Lawsuits Have Been Filed

F21 OpCo, LLC and two affiliates filed Chapter 11 on March 16, 2025, under lead Case No. 25-10469 (MFW) before Judge Mary F. Walrath. The company liquidated its U.S. stores, and its plan was confirmed on June 24, 2025 and went effective on June 30, 2025.

The plan handed Forever 21’s avoidance actions to a Plan Administrator, Steven Balasiano of MHR Advisory Group, LLC. He is represented by ASK LLP and Benesch Friedlander Coplan & Aronoff LLP. Demand letters went out around January 26, 2026. Vendors who did not settle are now receiving complaints.

The complaints seek to recover preference payments under 11 U.S.C. § 547, alternative fraudulent transfer claims under § 548, recovery under § 550, and disallowance of the vendor’s own claim under § 502(d) and (j). Each complaint attaches an Exhibit A listing every wire, its clear date, and the invoices it paid.

What Is a Forever 21 Preference Claim?

A preference claim asks a vendor to repay money it received from a debtor in the 90 days before bankruptcy. The law treats those payments as unfair to other creditors who were not paid. You do not have to have done anything wrong to be sued.

To win, the Plan Administrator must show each payment was:

1. A transfer of Forever 21’s property to you, as a creditor;
2. Made on account of a debt owed before the payment;
3. Made while Forever 21 was insolvent, which the law presumes for the 90-day window;
4. Made between December 16, 2024 and March 16, 2025; and
5. More than you would receive in a Chapter 7 liquidation.

That last element is easy for the plaintiff here. Forever 21’s disclosure statement projected that general unsecured creditors would recover well under 1% of their claims. So the fight is almost always about defenses, not the basic elements.

The complaints also ask the court to block any proof of claim you filed until you repay. If Forever 21 owes you money, a preference suit can wipe out your distribution as well.

Defenses Forever 21 Vendors Can Raise

The Bankruptcy Code gives vendors several defenses under § 547(c). The vendor carries the burden of proof on each one, so documents decide these cases.

The Forever 21 complaints themselves concede some of this. In at least one complaint, the Plan Administrator acknowledged about $98,872 in potential new value, based only on invoice dates. New value usually turns on ship dates, so the real number can be higher.

The same complaints say collection pressure, tighter credit terms, or threats to stop shipping can make a payment unordinary. That means your emails with Forever 21’s buyers and accounts payable team in late 2024 and early 2025 matter. Preserve them now.

Complete List of Forever 21 Preference Lawsuits

The Plan Administrator filed the first wave of Forever 21 preference complaints on October 2, 2026. As of October 17, 2026, the court docket shows 134 adversary proceedings, numbered 26-50745 through 26-50879, all assigned to Judge Walrath. Pretrial conferences in the first cases are set for December 8, 2026. If your company appears below, you have been sued.

Don’t see your company? You may still have received a demand letter, or you may be named in a later filing. Plaintiffs often file additional cases close to the deadline.

Kasen Law Group’s Preference Defense Results

These are Kasen Law Group’s preference and fraudulent transfer settlement results, exactly as recorded by the firm. Many come from retail bankruptcies like Forever 21’s, where vendors were paid in the final months before a chain collapsed.

Summary of Settled Matters

Details of Settled Matters

Prior results do not guarantee a similar outcome. Every case depends on its own facts.

Frequently Asked Questions

Who is suing Forever 21 vendors?

Steven Balasiano of MHR Advisory Group, LLC, as Plan Administrator for F21 OpCo, LLC. His lawyers are ASK LLP and Benesch Friedlander Coplan & Aronoff LLP.

What is the Forever 21 preference period?

December 16, 2024 through March 16, 2025, the 90 days before the bankruptcy filing.

Which court is hearing the Forever 21 preference cases?

The U.S. Bankruptcy Court for the District of Delaware, in Wilmington, under lead Case No. 25-10469 (MFW).

How long do I have to respond to a Forever 21 preference complaint?

Usually 30 days from the date the summons was issued, not the date you received it. Missing it can lead to a default judgment for the full amount plus interest and costs.

Can a foreign supplier be sued?

Yes. The Plan Administrator has sued overseas vendors, including suppliers in the Middle East and Asia. Being outside the United States does not stop a default judgment from being entered.

I filed a proof of claim. Is it safe?

No. The complaints ask the court to disallow your claim under § 502(d) until you repay the preference amount.

Should I just pay the demand?

Not before your defenses are calculated. Opening demands often ignore new value and ordinary course defenses that can reduce the claim substantially.

Sued in the Forever 21 Bankruptcy? Call for a Free Consultation

If your company received a Forever 21 preference demand letter or complaint, contact Kasen Law Group before you respond or pay. We will review your Exhibit A, calculate your defenses, and tell you what a realistic outcome looks like.

Call (856) 880-1010 or email Hello@BankruptcyAttorney.co. Bankruptcy Attorney Co. is a trade name of Kasen Law Group, P.C.

This article is general information about bankruptcy law and is not legal advice. Whether a preference claim can be reduced depends on facts specific to your account and your dealings with the debtor. 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.