Forever 21 Preference Lawsuits in Delaware Bankruptcy Court: What Sued Vendors Must Do Now

Quick Answer

If you were served with a complaint captioned Steven Balasiano of MHR Advisory Group, LLC, as Plan Administrator for F21 OpCo, LLC v. [your company], you are a defendant in a preference lawsuit in the U.S. Bankruptcy Court for the District of Delaware. You generally have 30 days from the summons date to answer. Missing that deadline risks a default judgment for the full amount.

What Was Filed Against Forever 21 Vendors in Delaware

The first wave of these Forever 21 preference lawsuits was filed on October 2, 2026, in Wilmington. Every case is an adversary proceeding tied to the main Forever 21 bankruptcy, In re F21 OpCo, LLC, Case No. 25-10469 (MFW), and every one is assigned to Judge Mary F. Walrath.

The complaints target payments Forever 21 made between December 16, 2024 and March 16, 2025. Demands range from tens of thousands to hundreds of thousands of dollars per vendor. One recent complaint against an overseas apparel supplier sought $468,733.50 based on five wires.

The complaints are filed by Benesch Friedlander Coplan & Aronoff LLP in Wilmington, with ASK LLP of St. Paul, Minnesota, as lead counsel. ASK LLP runs high-volume preference programs in many large retail bankruptcies.

What Happens Next in a Forever 21 Preference Case

Delaware preference cases follow a predictable path. Knowing it helps you avoid the costly mistakes.

1. Summons and service. The Plan Administrator serves the summons, complaint, and a notice of pretrial conference by mail. Under Bankruptcy Rule 7004, service by first-class mail is valid, so a letter to your office counts.
2. Answer or motion within about 30 days. Under Bankruptcy Rule 7012(a), your response is generally due 30 days after the summons is issued. Plaintiff’s counsel will often agree to an extension if you ask early.
3. Pretrial conference. In the first Forever 21 cases, pretrial conferences are set for December 8, 2026, at 10:30 a.m. in Courtroom 4 of the Delaware Bankruptcy Court. These are often continued once the parties are negotiating.
4. Exchange of defenses. Your lawyer sends payment history, ship dates, and a new value analysis. This is where most of the claim reduction happens.
5. Delaware routinely sends large preference programs to mediation. The complaints already include the Court’s Notice of Dispute Resolution Alternatives.
6. Settlement or trial. Most cases settle. A settlement typically includes a mutual release and resolves your proof of claim.

Delaware Issues That Trip Up Out-of-State and Overseas Vendors

You cannot answer as a company without a lawyer. A corporation or LLC must appear through counsel in federal court. A letter from your CFO to the judge is not an answer, and the case can proceed to default.

Your lawyer needs Delaware standing. Under Del. Bankr. L.R. 9010-1, an attorney not admitted in Delaware must associate with Delaware counsel to appear. Hiring a Delaware bankruptcy attorney directly avoids paying two firms.

Foreign suppliers are not out of reach. Forever 21 sourced heavily from overseas factories, and the Plan Administrator is suing them. A default judgment entered in Delaware can follow your company’s U.S. receivables, U.S. customers, and future U.S. bankruptcy distributions.

The Court knows these cases. Judge Walrath presided over both Forever 21 bankruptcies, the 2019 case and this one. Delaware’s bankruptcy bench also enforces specific pleading requirements for preference complaints, which can support a motion to dismiss when a complaint is vague.

Your proof of claim is at stake. Many vendors filed claims in the main case. The complaints seek to disallow those claims under § 502(d) until the preference is repaid.

Forever 21 Preference Defendants: Full Case List

Below are all 134 Forever 21 adversary proceedings filed in the District of Delaware under lead Case No. 25-10469 (MFW), as shown on the court docket on October 17, 2026. Defendant names appear exactly as captioned by the court. Search this page for your company name, including former names and d/b/a names.

This list is updated as new complaints are filed. A demand letter without a complaint means you have not been sued yet, which is often the least expensive time to resolve the claim.

How Forever 21 Preference Claims Get Reduced

The opening demand is rarely the final number. The reductions come from the same defenses available to Forever 21 vendors: subsequent new value credits goods you shipped after each payment, ordinary course protects payments made on your usual terms, and vague complaints can be challenged under Delaware’s pleading standards.

Below are Kasen Law Group’s preference and fraudulent transfer settlement results, exactly as recorded by the firm.

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

Where are the Forever 21 preference lawsuits filed?

In the U.S. Bankruptcy Court for the District of Delaware, 824 Market Street, Wilmington, as adversary proceedings in Case No. 25-10469 (MFW).

When were the Forever 21 preference complaints filed?

The first wave was filed on October 2, 2026. Pretrial conferences in the first cases are set for December 8, 2026.

Do I need a Delaware lawyer for a Forever 21 preference case?

Your company must be represented by counsel, and that counsel must be admitted in Delaware or work with Delaware counsel.

What if I ignore the Forever 21 complaint?

The Plan Administrator can seek a default judgment for the full amount, plus interest and costs, and your proof of claim can be disallowed.

What payments are at risk?

Any payment Forever 21 made to you between December 16, 2024 and March 16, 2025, by wire, ACH, check, or another method.

Can I settle before answering?

Yes. Many Forever 21 cases can be resolved during the response period once defenses are documented and sent to plaintiff’s counsel.

Talk to a Delaware Bankruptcy Attorney About Your Forever 21 Case

If you received a Forever 21 preference complaint or demand letter, contact our Wilmington office before your response deadline. We will review the complaint and Exhibit A, calculate your defenses, and handle your case directly in the Delaware Bankruptcy Court, with no separate local counsel needed.

Call (302) 214-0777 for a free consultation. Our office is at 1213 N. King Street, Suite 2, Wilmington, DE 19801. Delaware Bankruptcy Attorney is a trade name of Kasen Law Group, P.C.

This article is general information and is not legal advice. Deadlines and procedures in a specific adversary proceeding are governed by the summons, the scheduling order, and the Local Rules. Jenny R. Kasen has appeared before the United States Bankruptcy Court for the District of Delaware for more than thirteen years.