Forever 21 Bankruptcy Files in the United States

Forever 21 can be a step closer to the exclusion of operations in the US after the brand’s operating company has applied for a bankruptcy.

The company said in a statement that its stores and website in the United States will remain open as “the winding process” begins.

Forever 21 was once a favorite of young women around the world, but he struggles to attract customers to his stores because of the rising prices and the increasing popularity of online shopping.

The company has submitted an application for bankruptcy protection for the first time In 2019, a group of investors eventually bought it through a joint venture.

“We were unable to find a sustainable path forward, a competition from foreign fast fashion companies … as well as increasing costs, the economic challenges that influence our main customers,” said a message from the company’s chief financial officer.

The company said it would conduct liquidation sales in its stores and that some or all its assets would be sold under the court’s supervision.

“In the event of a successful sale, the company can focus on a complete download of operations,” the company statement said.

Chapter 11 Defense postpones the US company’s obligations to its creditors, giving it time to reorganize its debts or sell parts of the business.

Forever 21 stores and e -commerce platforms are managed by other license holders and will not be affected by the submission of bankruptcy protection.

The Fast Fashion Merchant was founded in Los Angeles in 1984 by immigrants to South Korea.

His cheap, modern clothes and accessories are becoming more popular with young people over the next few decades and the brand has become a competitor to giants for fast fashion such as Zara and H&M.

In its peak in 2016 there were 800 forever 21 stores worldwide, 500 of which were located in the United States.