Forever 21 has long been a staple in America’s purchasing malls. However, after this holiday season, more of its shops will go dark.
The fast-fashion retailer’s rapid expansion internationally took a toll on the company and contributed to Forever 21′s decision to file for bankruptcy protection in September. At the time, it had greater than 800 stores worldwide.
Its deal with expansion made it unable to invest in its provide chain, and so Forever 21 took extra time to get fresh styles of clothes to market at a time when fast fashion was actually selecting up, and consumers have been hungry for newness. Its sales tumbled as Forever 21 was pitted in opposition to heightened competition from rivals such as H&M and Zara.
Forever 21 additionally was burdened by its large shops that may be as giant as a division store or greater than 100,000 square feet. The corporate’s founders, the Changs, wished to open extra places shortly, and they also ended up shopping for bigger shops from now-bankrupt retailers such as Sears, Mervyn’s, and Borders.
Analysts additionally say Forever 21 failed to know a few of the markets outdoors of America because it opened extra retailers in places such as China and London.
Throughout its chapter proceedings, Forever 21 stated it plans to exit most of its companies overseas in Asia and Europe. It plans to continue operating in its stronger areas of Mexico and Latin America. And it doesn’t plan to exit any main markets within the U.S., although it is going to shut dozens of shops there.
The total number of stores that might be shuttered, nevertheless, remains unknown, as the company continues to negotiate with landlords.