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Forever 21 prepares to file for Chapter 11 Bankruptcy

Kelsei Scott

Staff Writer

Say goodbye to cheap thrills, because Forever 21 is not so forever after all.

 

The fast-fashion chain Forever 21 announced last month that filing bankruptcy may just be the best option after facing irreconcilable shortcomings due to revenue.

 

According to Forbes, sales dropped by at the most, 25 percent in 2018, and Forever 21 would like to

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work on restructuring the brand.

 

Filing for bankruptcy could give the owners of the franchise time to discover how they want to rebrand and market differently to increase sales.

 

While the clothing brand is having this mass of dilemmas, singer Ariana Grande filed a major lawsuit against Forever 21 for trademark infringement only days after news struck about the retail company.

 

It is a pessimistic time for everyone’s favorite shop.

 

Mia Jutan, a freshman mass communication major from Atlanta, Ga. said, “I feel if Forever 21 goes bankrupt, many consistent shoppers will be devastated because their primary source of shopping no longer exists.”

 

It goes without saying that Forever 21 is the number one source for fast fashion.

 

The company is known for its quick and affordable methods to obtain cheaply manufactured versions of high-end designer trends.

 

Jayla Manor, a freshman business major from Las Vegas, NV. also said, “I’ve been shopping at Forever 21 since I was probably in middle school so I feel like it will kind of cut out a piece of my child hood and it’ll force me to go to different outlets to find the clothes that I’m looking for instead of one place.”

 

Forever 21 was just one of many fast fashion chains to have a decline in sales this year. Chains including H&M and Zara have also undergone decline in sales.

 

The main cause of this sudden shortfall is because of the new wave of shopping in this era.

 

Today, consumers are turning to online fashion instead of in-store retail. Online provides more convenience for an avid shopper seeing that it is delivered right to your door; whereas, buyers would use to spend hours in the mall only to find nothing.

 

Online, there is a substantial amount of fast fashion chains that recreate high-end trendy clothes.

 

Fashion Nova, Shein, Zaful, Romwe, and the list goes on. With these affordable and more convenient online sources of fashion, Forever 21 was bound to have competition.

 

The convenience of online shopping poses a threat to not only stores like Forever 21, even stores like Footlocker faced difficulties with sales in some stores.  According to an article published on TheStreet.com, the Footlocker company is gradually closing Lady Footlocker locations across the country due to a decline in sales.

 

With Forever 21 filing for bankruptcy, this can be a stellar opportunity for smaller stores that are looking to not only expand, but get a leg up on today’s fashion.

 

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