Fast-fashion brand Forever 21 is closing up to 350 stores worldwide, a spokesperson said. That includes as many as 178 US stores. The retailer has filed for Chapter 11 bankruptcy protection in the US. This doesn’t mean Forever 21 is completely shutting down. “Filing for bankruptcy protection is a deliberate and decisive step to put us on a successful track for the future,” says the company statement.
Forever 21 was founded in 1984. The company blossomed during the 90s and became favourite among teenagers and young adults. However, the past five years have been very difficult. There any numerous complaints about low quality, not to mention the rise of online shopping from cheaper brands. Other buyers are focused on getting timeless, high-quality pieces, as part of the slow fashion movement.
According to THR, Forever 21 joins Barneys and Diesel on a list of retailers seeking bankruptcy protection as they battle online competitors. Others, like Payless ShoeSource and Charlotte Russe, have shut down completely.
Unlike US costumers, Forever 21 never became a hit among Europeans. With Zara and H&M the competition was stronger. Zara is currently the only brand not losing money, but they are making plans to turn to slow fashion as well.
The California-based firm Forever 21 has said it is seeking to close up to 178 stores across the US. It is also closing its stores in Canada but has provided few details on other markets. This is a year of awakening and most fast-fashion brands are finding ways to survive by turning to sustainable product making.
Some other, less known companies are sticking to fast fashin and still making a huge profit. Most of them are based in Asia and they sell far cheaper clothes than companies from the US or Europe. These are scary times for any fast-fashion brand, so we expect more closing and focusing on online shopping.