Forever 21 filed for bankruptcy, plans to shut down its stores in the US, Europe, and Asia
Forever 21, the teenager’s favorite clothing emporium that has made worldwide shopping malls boom and bust has filed for bankruptcy.
The Apparel retailer Forever 21 has announced on Sunday night that it is filing for Chapter 11 bankruptcy protection. It also said that it is planning to reshape its global business by closing nearly 350 stores throughout the globe.
This fashion retailer brand has obtained $275 million in financing from its existing lenders of JP Morgan Chase and it has also raised $75 million in new capital from TPG Sixth Street Partners and also affiliated funds to help support its bankruptcy operations.
One of the spokespeople from Forever 21 said that the company has requested approval to shut down its 178 US stores and 350 stores worldwide. This company’s aggressive real estate expansion has weighed more on its finances so it has planned to shut down 350 stores worldwide in 815 stores.
In a letter to its customers on Sunday Night, Company has mentioned that “Decisions about which US stores would be closed were continuing, and it depends on the outcome of the discussions with its landlords”.
However, it has mentioned that a significant number of these stores are expected to stay open and operate as usual. Also, it has mentioned the company will not exit any major markets in the US”
Forever 21 is the seventh-largest tenant to the mall owner, Simon Property group.
This brand plans to exit most of its international location stores in Asia and Europe. But it will continue their services in Mexico and Latin America.
The forever 21 is one of the reputed retailer’s brands that joined the list of bankruptcy. Previously Barney’s and mattress firms also used this bankruptcy protection to recover q bit from their footprints.
Forever 21 is the Los Angeles based company which was founded in 1984. This brand offers all the recent styles and it’s one of the best and popular brands around the world.
As shoppers are moving towards digital the company has kept all their new arrivals on their website and encouraging buyers to order from their site. Shoppers can quickly find a dress for $10 tops and $25 dresses and more under $40.
In recent years, as fashion has caught the younger generation, the companies are focusing more on the attention of the users. Forever 21 is moving forward with the leftover stores to recover a bit.