We shopped at Forever 21 the day after the fast-fashion retailer filed for bankruptcy and saw firsthand why it's in hot water
- Forever 21 filed for Chapter 11 bankruptcy protection on Sunday and announced it will shutter up to 350 stores globally, effectively ceasing operations in 40 countries, including most of its locations in Europe and Asia.
- In a letter to shoppers, Forever 21 was emphatic that it was not going out of business, but instead "taking positive steps to reorganize the business."
- We visited Forever 21 stores in New York City and London the day after the bankruptcy announcement and saw firsthand why the company is in hot water.
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Turns out Forever 21 might not be quite as everlasting as its name lets on.
The fast-fashion retailer filed for Chapter 11 bankruptcy protection on Sunday night, writing in a letter to consumers that it is "taking positive steps to reorganize the business" in order to "return to profitability."Read more: Forever 21, once among America's fastest-growing fast-fashion retailers, files for bankruptcy
As part of the filing, the mall brand staple will shutter up to 350 stores globally, effectively ceasing operations in 40 countries, including most of its locations in Europe and Asia. In the US, Forever 21 will close as many as 178 stores, though it will continue to sell products on its website and select locations, as well as in Mexico and Latin America, a spokesperson told Business Insider.
"This was an important and necessary step to secure the future of our company, which will enable us to reorganize our business and reposition Forever 21," Linda Chang, executive vice president of Forever 21, said in a press statement.
The announcement comes after several months of speculation, following reports that Forever 21 hired a team of advisers to help secure private-equity support as executives continued to butt heads with cofounder Do Won Chang.
We visited Forever 21 stores in New York City and London the day after the retailer filed for bankruptcy and saw firsthand how the company went from fast-fashion powerhouse to a disorganized mess of cheaply made apparel.