Forever 21 Bankrupt

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

Ever since it opened in the United States, Forever 21 has become a 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. That is why it has always been one of the most popular in the country. But that popularity has been declining, which has put the company in trouble.

A few weeks ago, the rumor had spread that Forever 21 was having financial problems and that it was very possible that they would declare bankruptcy. Unfortunately that is no longer just a rumor, but a reality. The company announced this Sunday that it had filed for bankruptcy and that therefore they would close some 178 of the 800 establishments they have around the country.

"The decision on which national stores will be closed is ongoing, pending the result of talks with the owners [of said spaces]," the company explained in a press release. “We hope that a significant number of these stores will remain open and operate as usual. We do not expect to exit any major market in the United States."

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.

Forever 21 was founded in 1984 in Los Angeles, and although it started as a small store, in a short time it expanded, becoming one of the most popular stores in the country.

The company is yet another one that has been struggling in recent years and has had to resort to bankruptcy in order to float. Many of these companies have even disappeared. We hope this is not the case for Forever 21.