Forever 21 or F21 as it was popularly known, the apparel retail chain that operates 540 stores across the US currently, has filed for bankruptcy yet again. It is reportedly unable to face the stiff competition, or deal with the rising costs, and keep pace with changing consumer preferences. The retailer is looking at a sale even while it closes all its US stores gradually. It is also trying to sell its assets and is on the lookout for a bidder. Thousands of employees at its corporate offices, stores and warehouses are staring at an uncertain future.
This is the second time Forever 21 is filing for bankruptcy. Its locations outside the US are run by other licensees, and therefore, are excluded from the filing. The last time it filed for bankruptcy was in 2019, which led to a significant reduction in the number of stores in its chain. It was hoped that efficiency would improve and profits would increase. However, the pandemic struck and the retail firm’s challenges only kept increasing.
The brand, which was once a rage with youngsters, especially teenagers, had been founded by Do Won and Jin Sook Chang, a couple from South Korea, back in 1984, in Los Angeles. By 2005, it had witnessed sales worth over $4 billion. The growth did not last with the growing popularity of e-commerce. Footfall in malls started declining and competition grew with most rivals in the space taking advantage of the e-commerce boom.
