Forever 21 Prepares To File Bankruptcy

2024 Author: Steven Freeman | [email protected]. Last modified: 2023-12-17 08:15

As everyone knows, Forever 21 has become the favorite store for many girls who like to look fashionable without spending a fortune. The store, whose prices are among the most affordable on the market, offers cool, modern pieces and often also replicas of the most popular designs by prestigious brands. For this reason, the chain of stores has always been one of the most popular in the United States. But it seems that popularity has been declining and is putting it on the spot.

A credible source warned Bloomberg and CNBC that Forever 21 would be contemplating filing for bankruptcy due to low sales, which has led to debt. According to sources, the company is currently talking to advisers and trying to find other financial options to consolidate the debts, but those conversations have not yet led to anything.

The company is reportedly used to raising about $ 3 trillion in sales, and that number has dropped dramatically, making it difficult for them to pay sellers, as well as pay rent for buildings where some of their stores.

For the moment, the company has not commented on it and has not announced the closure of any of its stores. In total they have 800 stores throughout the United States, many of them located in shopping malls where the traffic of people every day is less.

This is a problem that some of the most popular stores such as Topshop have been facing, which recently filed for bankruptcy and closed all of its stores around the country. And is that the number of online stores and the ease of obtaining anything through the computer or the phone, has affected immensely the stores that for years had been quite stable.

Now we just have to wait to see what Forever 21 says.