- Forever 21 just filed for bankruptcy.
- It’s also closing almost 350 total stores across the world.
It’s a sad, sad day for everyone who likes trendy fast fashion that’s super cheap: Forever 21 just filed for bankruptcy.
There have been rumors of this happening for weeks now, and a report back in August even said the fast-fashion retailer was considering it, but now it’s extremely official. A press release says Forever 21 filed for Chapter 11 bankruptcy protection on Sunday. In even bleaker news, the New York Times reports that Forever 21 will now close a whopping 178 stores in the U.S. and almost 350 stores overall.
Here’s what a company exec has to say about this:
“This was an important and necessary step to secure the future of our company, which will enable us to reorganize our business and reposition Forever 21,” said Linda Chang, executive vice president of Forever 21, Inc. in the press release.”
“We went from 7 countries to 47 countries within a less-than-six-year time frame and with that came a lot of complexity,” Chang added while speaking to the New York Times. “The retail industry is obviously changing—there has been a softening of mall traffic and sales are shifting more to online.”
As of right now, it seems like the website is relatively unaffected by this news, which is good news for anyone who spends their lunch breaks scrolling through the “new arrivals” section.
Forever 21 is hardly the first fast-fashion company to struggle lately. Charlotte Russe closed all its stores this year, dELiA*s did the same in 2014, and Claire’s filed for bankruptcy and closed almost 100 stores last year.
Obviously, that’s not awesome for the companies! But as CBS points out, some young customers are losing interest in fast fashion in favor of sustainable, eco-friendly, green clothing brands...which is actually pretty great!