Forever 21 denies reports of filing for bankruptcy; to continue operations of majority stores

by Apparel Resources News-Desk

12-September-2019  |  1 min read

Forever 21 store
Image Courtesy: bringmethenews.com

It is no secret that brands have been facing tough times in the bricks-and-mortar sector due to slow sales, online rivals and changing consumer habits – Forever 21 is no different.

Reports stated that the teen retailer plans to file for bankruptcy in a US court, but the brand has come out and said in a statement that these reports are ‘inaccurate’ and that they intend to continue operating their stores.

“Our stores are open and it is our intention to continue to operate the vast majority of US stores, as well as a smaller amount of international stores, providing customers with great service and the curated assortment of merchandise that they love and expect from Forever 21,” the statement said.

Despite this, a report released by consulting firm BDO USA LLP states that retailers all over the US closed more stores from January to June than in the whole year of 2018; close to 7,000 stores in the first half of this year as compared to 6,000 last year.

A person familiar with the matter of Forever 21’s bankruptcy said that the brand might end up closing around 700 stores.

Forever 21, founded in 1984 in Los Angeles by husband and wife Do Won Chang and Jin Sook Chang, describes itself as the fifth-largest specialty retailer in the US.

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