6 hours ago
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Forever 21 could beryllium a measurement person to shutting down operations successful the US aft the brand's operating institution filed for bankruptcy protection.
The steadfast said successful a connection that its stores and website successful the US volition stay unfastened arsenic it "begins its process of winding down".
Forever 21 was erstwhile a favourite of young women astir the world, but it has struggled to pull customers to its shops due to the fact that of rising prices and the increasing popularity of online shopping.
The institution filed for bankruptcy extortion for the archetypal clip successful 2019, but a radical of investors ended up buying it done a associated venture.
"We person been incapable to find a sustainable way forward, fixed contention from overseas fast-fashion companies... arsenic good arsenic rising costs, economical challenges impacting our halfway customers," Brad Sell, the company's main fiscal serviceman said successful a statement.
The steadfast said it would behaviour liquidation income astatine its stores and that immoderate oregon each of its assets would beryllium sold successful a court-supervised process.
"In the lawsuit of a palmy sale, the Company whitethorn pivot distant from a afloat wind-down of operations," the firm's connection said.
Chapter 11 extortion postpones a US company's obligations to its creditors, giving it clip to reorganise its debts oregon merchantability parts of the business.
Forever 21's shops and e-commerce platforms extracurricular of the US are operated by different licence-holders and volition not beryllium affected by the bankruptcy extortion filing.
The fast-fashion retailer was founded successful Los Angeles successful 1984 by South Korean immigrants.
Its inexpensive, trendy apparel and accessories became progressively fashionable with young radical implicit the adjacent fewer decades and the marque became a rival of fast-fashion giants specified arsenic Zara and H&M.
At its highest successful 2016, determination were 800 Forever 21 shops astir the world, 500 of which were located successful the US.
English (US)