The famous Forever 21 which once served as the power-house for the fashion industry is now about to close around 200 stores in the US. The closures are reportedly because of the possibility of a second bankruptcy. The fashion retailer tried all it could to revive its business. However, nothing seemed to work in their favor. If you are someone who wants to know more about the Forever 21 closure, this article is for you. It brings you all the necessary details you must know about Forever 21 store closures amid potential second bankruptcy.
Why Is The Iconic Fashion Retailer Now Failing?
Forever 21 was once an icon in the fashion industry. Its success and popularity were at its peak with over 800 stores operating over the world. However, many changes and shifts in consumer behavior led to its failure and eventual bankruptcy. The rapidly rising competition from other digital retailers is also one of the main reasons for its failure. The rebranding of the stores also failed miserably which means there are high chances many stores will face closures. It will highly affect retail workers across the United States.
Forever 21: The First Bankruptcy
Forever 21’s first phase of bankruptcy was in the month of September 2019. The famous fashion retailing company filed for Chapter 11 protection. A consortium including Authentic Brands Group, Simon Property Group, and Brookfield Property Partners later bought it. The main reasons for the bankruptcy were reportedly its worldwide expansion and high rents. Forever 21’s intellectual property belongs to the Authentic Brands Group. The company currently operates as a separate entity namely Forever 21 Opco.
A Trend In The Retail Market
Forever 21 is not the only one affected by changing consumer preferences and competition from digital retailers. Many similar iconic retail chains like JCPenney, Kohl’s, and Party City, are also closing their stores. JCPenney also faced bankruptcy in 2020 after an increase in online shopping and a decline in mall traffic. Party City is also facing major financial challenges. Forever 21 store closures highlight the trend of failing retail business. This trend is mainly because of the increase in digital retail competitors as well as the rapidly changing consumer preferences.
Forever 21 Store Closures: List Of Stores
According to the official reports, Forever 21 is planning to close around 200 stores amid the possibility of bankruptcy. Around 21 locations are reportedly closing in New York. San Antonio will also see some major store closures of the iconic fashion retail brand. Any more information about the store closures is still not announced as of yet. Many people are left wondering which one of the 500+ stores across the country will probably face closures. Forever 21 is expected to go ahead with the second bankruptcy next month.
Reactions Of Customers
With the growing speculations about Forever 21’s potential second bankruptcy, the internet as always has its own views about the situation. Many users who were once regular buyers of the brand expressed disappointment. However, the news of the store closures and bankruptcy did not surprise anyone. The growth of the digital retail market and shifting consumer behavior were bound to have an effect on the brand. Some also believe brands like Shein and Temu are responsible for cutting off Forever 21’s consumer base.
