Perhaps every fashionista’s go-to boutique is Forever 21; for very affordable prices, the store offers high-end fashion rip-offs, accessories, lingeries, and whatnot.
For years, this “fast-fashion” scheme has been the bridge between middle class citizens and the runways of Paris, Milan, and New York. It brings the scraps of haute couture right inside your closet.
In a recent Bloomberg report, the fashion giant already considered filing for bankruptcy after its sales went down in 2018.
In the same report, the store added that filing for bankruptcy would help the brand “shed unprofitable stores and recapitalize the business.”
“At the time of writing, Forever 21 has not announced any plans to close any of its over 800 locations across the U.S.,” the report said.
Forever 21 is now looking for a potential debtor-in-possession loan to take the brand into Chapter 11.
Chapter 11 is a bankruptcy code which provides for a reorganization that involves a corporation or partnership.
Today, the brand’s real estate footprint is considered large with its 815 stalls.
CNBC said that the most troubled retailers like Forever 21 are usually located in malls, where there are fewer shoppers willing to spend their money.
One of the brand’s problems is its competition between physical stores and new online brands like Lulus.
Investing in technology to keep up with the competition would be a great help to the company.
Officers from Forever 21 have yet to comment on the matter.