Quick Answer
Overseas suppliers can be sued, and are being sued, in the Forever 21 bankruptcy. The Plan Administrator for F21 OpCo, LLC has filed preference lawsuits in the U.S. Bankruptcy Court for the District of Delaware against factories and trading companies in mainland China, Hong Kong, elsewhere in Asia, the Middle East and beyond. Being outside the United States does not stop a default judgment, so a foreign vendor should hire Delaware counsel before its answer deadline, which is generally 30 days after the summons was issued.
Overseas Suppliers Are a Large Share of the Forever 21 Defendants
Forever 21 sourced much of its clothing, footwear and accessories from overseas. Of the 134 Forever 21 adversary proceedings on the Delaware docket as of October 17, 2026, about 50 name companies that appear to be based outside the U.S. They include garment makers in Ningbo, Nantong, Qingdao, Shanghai and Zhejiang, Hong Kong trading companies, a sweater mill, a silk producer and a footwear maker.
All of the cases are adversary proceedings in the main Forever 21 bankruptcy, In re F21 OpCo, LLC, Case No. 25-10469 (MFW), before Judge Mary F. Walrath. The plaintiff is Steven Balasiano of MHR Advisory Group, LLC, as Plan Administrator, represented by ASK LLP and Benesch Friedlander Coplan & Aronoff LLP.
The demands are significant. One complaint against an overseas apparel supplier seeks $468,733.50 based on five wires Forever 21 sent between December 16, 2024 and March 16, 2025.
Why a Foreign Supplier Cannot Simply Ignore the Complaint
Many overseas vendors assume a U.S. bankruptcy court cannot reach them. That is a costly assumption.
- A default judgment is easy to get. If you do not answer, the Plan Administrator can ask the court for judgment for the full amount, plus interest and costs.
- The judgment can follow your U.S. business. It can be enforced against money owed to you by U.S. customers, against U.S. bank accounts, and against any payment you would receive in a future U.S. bankruptcy case.
- Your proof of claim is at risk. If you filed a claim for unpaid Forever 21 invoices, the complaint asks the court to disallow it under 11 U.S.C. § 502(d) until you pay.
- Your company cannot answer on its own. A corporation must appear through a lawyer in U.S. federal court. A letter or email from your sales manager to the judge is not an answer.
Delaware Rules That Matter to Foreign Vendors
You need Delaware counsel. Under Delaware Bankruptcy Local Rule 9010-1, a lawyer not admitted in Delaware must work with Delaware counsel to appear. Hiring a Delaware bankruptcy attorney directly avoids paying two firms.
Service of process may be open to challenge. The complaints are usually sent by mail. Whether mail service is valid on a company in another country depends on international rules such as the Hague Service Convention, and some countries, including China, have objected to service by postal channels. Your lawyer can tell you whether service on your company was proper and whether challenging it helps your position.
Deadlines are strict. Your answer is generally due 30 days after the summons was issued, not 30 days after it reached your office. Overseas mail can take weeks, so check the issue date on the summons the day it arrives. Plaintiff’s counsel will often agree to an extension if asked early.
Mediation is common. Delaware routinely sends large preference programs to mediation, and most cases settle. Mediations can often be attended by video, so your team may not need to travel.
Defenses Overseas Apparel Suppliers Often Have
The same defenses under 11 U.S.C. § 547(c) apply to foreign and U.S. vendors. Overseas suppliers often have strong facts for them.
| Defense | Why it often fits overseas suppliers | Records to gather |
| Subsequent new value, § 547(c)(4) | Factories kept shipping production orders after receiving payment in early 2025 | Bills of lading, FOB ship dates, packing lists, commercial invoices |
| Ordinary course, § 547(c)(2) | Many suppliers were paid on the same terms for years | Two years of wire history and invoice terms |
| Contemporaneous exchange, § 547(c)(1) | Some orders were paid by deposit or against shipping documents | Deposit terms, letters of credit, documents-against-payment records |
| Not estate property | Payment came from a letter of credit bank, factor or parent company | Bank and L/C records |
| Mere conduit | A Hong Kong trading company or buying agent only passed the money to the factory | Agency agreement, onward wire records |
For overseas vendors, the ship date is usually the FOB date at the port of loading, which can be weeks before Forever 21 received the goods. Getting that date right can change the new value calculation significantly.
Practical Steps for Foreign Suppliers This Week
- Find the summons and note the date it was issued.
- Send the complaint and Exhibit A to a Delaware bankruptcy attorney, with an English summary of your relationship with Forever 21 if your records are in another language.
- Gather two years of Forever 21 wire records, invoices and shipping documents.
- Collect emails and WeChat or WhatsApp messages with Forever 21’s buyers and accounts payable team from late 2024 and early 2025, and preserve them.
- Identify who actually received each payment: your company, an agent, a factor or a related company.
- Do not pay or sign a settlement until your defenses are calculated.
Frequently Asked Questions
Can a Chinese or Hong Kong supplier be sued in the Forever 21 bankruptcy?
Yes. The Plan Administrator has sued suppliers in mainland China and Hong Kong, as well as companies elsewhere in Asia and the Middle East, in the Delaware Bankruptcy Court.
What happens if a foreign supplier ignores the Forever 21 complaint?
The Plan Administrator can seek a default judgment for the full amount plus interest and costs. That judgment can be enforced against the supplier’s U.S. receivables, U.S. bank accounts and future U.S. bankruptcy distributions.
Does a foreign company need a Delaware lawyer?
A company must appear through a lawyer, and that lawyer must be admitted in Delaware or work with Delaware counsel under Local Rule 9010-1.
Do I have to travel to the United States?
Usually not. Most preference cases settle through written exchanges and mediation, which can often be attended remotely.
Our Hong Kong company was only an agent for the factory. Are we liable?
Possibly not. A party that only passed money through to someone else may argue it was a mere conduit, not the initial transferee. This depends on your agency agreement and payment records.
Is the Forever 21 preference period different for foreign vendors?
No. It is December 16, 2024 through March 16, 2025 for every vendor.
Speak With a Delaware Bankruptcy Attorney About Your Forever 21 Case
Our Wilmington office represents U.S. and overseas vendors in preference cases directly in the Delaware Bankruptcy Court, with no separate local counsel needed. Kasen Law Group has resolved 75 preference and fraudulent transfer matters with an average claim reduction of 90.8%. We will review your complaint and Exhibit A, check whether service was proper, and calculate your defenses.
Call (302) 214-0777 for a free consultation. Our office is at 1213 N. King Street, Suite 2, Wilmington, DE 19801. See the full list of Forever 21 preference defendants or learn more about our preference litigation practice.
Delaware Bankruptcy Attorney is a trade name of Kasen Law Group, P.C. This article is general information and is not legal advice. Prior results do not guarantee a similar outcome. Deadlines in a specific adversary proceeding are governed by the summons, the scheduling order and the Local Rules.