Fall Forever 21: Attempts to save the Forever 21 brand failed. Reuters reports that The company filed for bankruptcy on Sunday based on chapter 11 of the American Bankruptcy Code. “Suppliers, sellers and other unsecured creditors of Forever 21 'have been crushed” by a restructuring plan, which provides little debris returns, “we read.
They could not stand the competition: Creditors are to receive only 3 to 6 percent. from their 433 million dollars of claims. The debt 21 debt reaches around $ 1.6 billion in total. According to court documents, the company has assets worth $ 100 to 500 million. Reuters reports that among the reasons for the fall of the brand include “Poor traffic in shopping centers and growing online competition in the Fast Fashion sector”. In this context, it is mainly about Chinese Shein or this.
Liquidation sales: Forever 21 is currently running Liquidation sales in about 350 stores in the USAfor which the brand did not find the buyer. A company under court supervision It will also carry out the process of selling part or all of its assets. “If the sale of assets is successful, Forever 21 may avoid complete liquidation and continue operating in a changed form,” says the portal forhandlu.pl.
Forever 21 in Poland: American brand It also operated in Poland. She appeared in our country in 2016. Three years later, Forever 21 carried out a restructuring and in its framework announced a closing plan for 178 of its unprofitable stores, including those in our country. Other brands of brands in Europe and Asia were also liquidated.
See also: The fall of the Swedish tycoon. More on this subject in the text “The giant announces bankruptcy. 'One of the largest bankruptcies in history'. He had a factory in Poland”.
Sources: Reuters, Dlahandlu.pl