Forever 21, founded by South Korean immigrants, Do Won Chang and Jin Shook Chang in 1984 (35 years as of 2019), has filed for bankruptcy.
Forever 21 bankruptcy news has taken over the web like a storm. Linda Chang, executive vice president of the company, has stated that this step was necessary to think about the future of the company, customers and share holders in light of recent buying trends.
With the rise of online stores and very short trend cycles, Forever 21 could not keep up with the pace and cost of rents.
Forever 21 has global presence with 549 stores in US and 251 stores in other countries including 21 stores in India.
Forever 21 bankruptcy news has been in the air for quite some time. Several apparel and fashion stores have closed in last 5 years. Same time period as it took to grow the online market of fashion and trends.
The rise of customer friendly return policies and home trials have caused a significant impact on how current youth are shopping for clothes these days.
So far, several US retailers in clothing market have closed shops, nearly 8,200.
Online consumerism is only going to increase with time and since, Amazon is currently providing new ways for the customers to get their hands on the latest products or trends as quickly as well (in some US states and counties, Amazon shipping time is less than 5 hours), other fashion giants (stores) might have to close shops too.
Wet Seal, Delia and American Apparel had filed for bankruptcy in 2016. There are some stores still in working condition, but for the most business, they have taken a huge hit from online market.
Forever 21 bankruptcy might not be the last bankruptcy in clothing retail market we see by the end of 2019.