Forever 21 store closures accelerated by competition from Shein and Temu
In 2025, in 2025, there would be another channel of retail closes, as hereditary companies will perform ruthless competition.
Hundreds of forever 21 USA Store It will be closed in the end of March, the ruthless competition for years of pressure on economic pressure.
F21 OPCO, Forever 21 stores operator and brand licensee, which has filed bankruptcy in the Bankruptcy Court, for the second time in six years, Delaware.
Forever 21 likely to have the rest of the stores approaching the second bankruptcy
“We have not been able to find a steady path, taking into account the competition from foreign fast fashion companies that have been able to use de minimis freedom, our brand for rising prices and margin. Economic challenges The development of our main customers and consumer tendencies, “F21 Opco CFO Brad said in a statement.
The company says that while he walks around the US operations, it continues to look for a buyer for some or everyone of his assets. Sara Foss, a bankruptcy expert’s lawyer and the head of money, believe that “it is unlikely that the White Knight emerge to buy all or part of its retail places.”
Buyers are walking in the center of San Francisco, as they use post-election New Year sales in 2007. December 27 in San Francisco, California. (David Paul Morris / Getty Images / Getty Images)
According to the court documents, the closure of the store is already underway with the first channel of the worst month of Forever 21, until March 30.
According to the court documents, the closure will affect approximately 236 stores, which will affect the first wave of closing, as the company says that “it is unlikely that any third party will acquire these places.” The rest of the stores are expected to send their doors to May 1.
US retail sales in February are reborn moderate
FOSSH highlighted how fast fashion retail challenges to face challenges in September 2019 after the company shut down more than 100 of its 534 stores and sold the rest of the buyers’ consortium.
Forever 21 owner authentic brand group եւ Simon Property Group created a joint venture, SPARC group to keep the company alive in 2019.
The underground sales advertisement is displayed in Forever 21 store window, which is ready to close in San Francisco, San Francisco, California. (Justin Sullivan / Getty Images)
The retailer of the fashion is connected to a low cost of Party Goods Retail Chain Party City and a retailer of a sewing and craft who are re-protected. Since the beginning of 2024, 20 chapters were registered, but 25 retail chains have been at least two bankruptcy points since 2016, according to debt data.
“Brick-and Montar Retailers Like Forever is operating in a highly competitive retail environment where business costs are expensive and rising in inflation rate” Ultra low price online retail sale such as Sheon and Temu, who are able to use the freedom of de minimis, reflecting goods from imports and tariffs to $ 800 worth of goods. ”
Shein and Temu offer a number of products and clothes at low prices. Companies are criticized on job practice, environmental concerns and business ethics such as intellectual property violations.
Forever 21 shop in New York in the United States on Friday 7 February 7, 2025. (Yuki Iwamura / Bloomberg Via Getty Images / Getty Images)
John Mercer of Global Research Head of Reper Research also highlighted how competitive pressure from fast fashion platforms increased in recent years Inflation consumers With leverage their cheaper prices, they will continue to grow retail in 2025.
The company assessed that this year will be 15,000 closed this year. This year, the company predicted the openings of about 5,800 stores, but yields a net loss.
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However, Foss said it does not mean the company’s end.
The company’s trademark and intellectual property, which belongs to the subsidiary of the authentic brand, is not part of the bankruptcy and will live in some way, FOSS said.
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