Forever 21 To Shut Down 178 Stores In 40 Countries After Filing Bankruptcy
One of the largest fast-fashion chains of world Forever 21 Fashions filed for chapter 11 of bankruptcy in the US. The Los Angeles based store started in 1984 once had 800 in 57 countries.
Once a popular fashion brand among millennials fell to the ground after failing to deliver the quality and rapid expansion. The brand has been facing tough competition from online retailers as well as other high-street brands like H&M and Zara. In the past 5 years, these two brands rose to fame with their on-point designs and great quality at equivalent prices to that of Forever 21.
The company said it plans to exist most International locations in Asia and Europe in the second phase. For now, they’ll be shutting 178 stores out of approximately 500 in the United Nations. Though they’ll continue operating in Mexico and Latin America.
In a statement, the company said “As such, and as part of our filing, we have requested approval to close up to 178 stores across the U.S. The decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords. We do, however, expect a significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the U.S.”
“This does not mean that we are going out of business – on the contrary, filing for bankruptcy protection is a deliberate and decisive step to put us on a successful track for the future.”
The officials of brand accepted that they failed at providing the customers what they want. The brand lost its oomph over the years which also means less footfall.
This also puts future of Forever 21 in India at jeopardy. Currently, there are 21 stores operating in the Indian market. If rumours are to be believed all 21 stores will go out of business by the end of this year. The news has broken the hearts of many loyal fans of the brand.
We do wish Forever 21 to make a comeback soon.