Forever 21, Burdened by Debt, Considers Filing for BankruptcyAugust 31, 2019 08:45
(Image source from: iDiva)
American clothing company Forever 21, one of the most adored fashions brands by the younger generation, is now planning to file for bankruptcy due to failed turnaround plans and decline in cash flow.
Forever 21 earlier too embroiled in controversy for sending diet bars with plus-size orders. The company, however, managed to maintain its reputation.
The fashion brand has been allegedly in talks with advisers and lenders to restructure its debt since June, Vox reported. This might affect their large number of stores and might force them to shut down the outlets which also include some rented ones.
According to a report by Forbes, the size of Forever 21 stores fell off from 38,000 square feet to 21,000 square feet.
Forever 21 is not the only store which found it tough to survive in this economy. A lot of leading brands such as Payless ShoeSource is shutting down about 2,500 stores, Victoria’s Secret is shutting down 53 stores, Abercrombie & Fitch is shutting down 40 stores.
By Sowmya Sangam