After years of battling expensive rents, tough competition and e-commerce, popular fast fashion retailer familiar to many of us during our teenage and college years is facing difficult times ahead.
reported that Forever 21 has officially filed for bankruptcy protection
This filing allows to company to continue operating while working on a plan to pay its creditors and hopefully reverse the losses.
One of the business' restructuring plans is to cease operations in 40 countries
, including Canada and Japan, as reported by New York Times
Not only that, approximately 178 stores in the United States and 350 all around will be closed down.
While we don't have the final word about the status of Forever 21 stores in Malaysia, we can still shop on the company's website.
Currently, the retailer reportedly has liabilities of between USD1bil and USD10bil.
Fortunately, Forever 21 has gathered USD275mil in funding from JPMorgan, Chase & Co., and another USD75mil in new capital from TPG Sixth Street Partners.
This comes as little surprise as the newer generation does not seem to be interested in the brand, despite its affordable and attractive clothing.
Thanks to how we are spoiled for choice when it comes to streetwear and fashion nowadays, brands that began decades ago should constantly refresh and rethink new ideas to stay relevant.
We would hate to see Forever 21 go, so let's hope the people behind the bright yellow shopping bags are able to turn the brand around soon!