Forever 21 closes hundreds of stores, files for bankruptcy
Forever no more for Forever 21.
Forever 21 said on Sunday that it filed for bankruptcy. The American store said it will close 178 of its 800 stores.
“We do however expect a significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the U.S.,” said the company.
Filing Chapter 11 bankruptcy “is important and necessary step to secure the future of our company, which will enable us to recognize our business and reposition Forever 21,” said Linda Chang, Executive Vice President.
Forever 21 is the latest company among the chain of retailers that have filed for bankruptcy due to the rise of online shopping. Coresight Research said that 8,200 retail stores have closed this year.
“Retailers relying on debt to finance their growth have always been susceptible to showdowns,” Greg Portell of A.T. Kearney said.