The beloved giant retailer has officially filed for bankruptcy last week. Forever 21 will close up around 178 stores in the US alone and up to 350 stores worldwide, however the website will continue to run as normal … for now. Sadly, the company will stop its operations in 40 countries including Canada and Japan, thereby “exiting most international locations in Asia and Europe”!
However, all is not over yet as the fast-fashion franchise aims to simplify its business so that they can concentrate on going “back to doing what they do best”, as explained by their Executive Vice President. Due to declining sales, the company was in negotiations to facilitate financing options and restructuring of their debts, however, it seems these negotiations did not see the light of day and the filing for bankruptcy was the only viable option. For a company that was used to making an estimated $3 billion in yearly sales, staying afloat became increasingly difficult and the only solution was for them to streamline their formula by “shedding unprofitable stores and recapitalising the business”.
Some insiders believe that Forever 21 “have lost their cool factor” due to the fact that they have extremely broadened their merchandise. But it seems that many other fashion retailers are struggling as well. UK-based TopShop also recently filed for bankruptcy and closed all of their US stores. We hope this is not the end of an era for Forever 21 and for all its loyal customers, despite the calls against fast fashion and their harmful effects on the environment, but we simply cannot imagine a world without Forever 21 in it!