Forever 21 Prepares for Possible Bankruptcy Filing
As the struggling fashion retailer’s hopes for recovery fade, Forever 21 is said to be preparing for a potential bankruptcy filing. According to Bloomberg.com, Forever 21 has been trying to secure additional financing in an effort to restructure its debt.
Although Forever 21 has yet to comment, it has reportedly been exploring bankruptcy as an option. Only a last-minute deal with potential lenders could keep the company out of court at this point.
Filing bankruptcy would allow Forever 21 to eliminate unprofitable stores and recapitalize the business, but the vacancies left behind by the closing stores would cause a significant issue for shopping malls.
Forever 21 is one of the more sizeable tenants still hanging on in many struggling malls. If those stores close, shopping centers would likely have a hard time filling those vacancies.
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Very sad to be reading this as I LOVE Forever XXI. I do know that our store relocated from our local mall a few years back & they have had other retailers follow suit. They’ve been replaced by frilly “filler stores” like a cookie store, quarter candy machines, & a lousy arcade
Same thing happened in my town. I liked their camisoles; I still have some from about 10 years ago and also a few blouses and pants.
Well, I hope “fast fashion” is on it’s way out because it’s horrible for the environment.
Agreed!
Does this mean I have to go back to shopping at Forever 51?
Lol!!
Their clothes are horrible quality
Second that. Very poor quality
Yeah, they might be very cheap, but they don’t last at all. Bad quality.
Omg I used to work there years ago! I have to admit I haven’t shopped there in a long time though. Wow! End of an era it seems!
I better stock up on camis now. They are the absolute best! I have had mine for years.
The co founders are a couple from South Korea who started their first forever 21 store with their savings of 11k.. in their 1st year they made 700k, needless to say they’re billionaires now listed in Forbes.. they’ll be alright.
Watch True Cost on Netflix. This company is filled with labor issues. They treat employees, who work for dollars an hour at their sweat shops horribly. It’s disgraceful. Good riddance F21!
Ugh not surprised Chris, thanks for the info.