Forever 21 has appeared to bankruptcy protection For the second time As traffic in US shopping centers fades and online retailers competition such as Amazon, Temu and Shein intensifies.
F21 OPCO, which is executed Forever 21 stores, said Sunday night that the business in the USA.
“While we have evaluated all the options to better position the company for the future, we have not been able to find a sustainable path, given the competition of Fast Fashion Foreign Companies, which have been able to take advantage of the exemption of Minimis to undermine our brand about prices and margin,” said Financial Director Brad Sell in a statement.
He Minimis tax exemption We go to shipments that are addressed to the companies and consumers of the United States valued in less than $ 800 to enter the tax free of taxes and tax free.
Forever 21 stores in the US will celebrate settlement sales and the website will continue to run while operations end. The locations of the retailer outside the US are administered by other licensees and are not included in the presentation of bankruptcy. International stores and websites of international stores will continue to operate as normal.
Authentic Brands Group has the international intellectual property associated with the Forever 21 brand and can license the brand to other operators, said F21opco.
Forever 21 appeared for the first time Banking protection In 2019. it was acquired by a consortium of the parties that include authentic group of brands and owners of Simon Property Group and Brookfield Property Partners shopping centers.
Forever 21 was founded in 1984 and, along with other fast fashion chains such as HANDM and Zara, set up a wave of popularity among young clients in the mid -1990s. Its popularity grew during the great recession, when buyers were looking for bargains. But Forever 21 made an aggressive expansion just when buyers moved more online.
Neil Saunders, managing director of Globaldata, said in a statement that starts from the problem now is that Forever 21 stores are too large for their current needs and is in shopping centers without sufficient pedestrian traffic.
“Forever 21 was always a retailer who lives in the time borrowed.” Both things have eroded their position and exhausted their market share. ”
