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Forever 21 could be one step closer to closing operations in the US. Uu. After the brand operational company requested bankruptcy protection.
The firm said in a statement that its stores and its website on the United States will remain open as “its liquidation process begins.”
Forever 21 was once a favorite of young women around the world, but has fought to attract customers to their stores due to the increase in prices and the growing popularity of online purchases.
The company requested bankruptcy protection for the first time in 2019, but a group of investors ended up buying it through a joint company.
“We have not been able to find a sustainable path forward, given the competition of fast -fashionable foreign companies … as well as the increase in costs, the economic challenges that affect our main clients,” said Brad Sell, the company’s financial director in a statement.
The firm said it would make settlement sales in its stores and that some or all its assets would be sold in a process supervised in the court.
“In the case of a successful sale, the company can get away from a complete breath of operations,” said the firm’s statement.
Chapter 11 Protection postpone the obligations of an American company with its creditors, giving it time to reorganize your debts or sell parts of the business.
Forever 21’s e -commerce stores and platforms are operated by other licenses and will not be affected by the presentation of bankruptcy protection.
The fast fashion retailer was founded in Los Angeles in 1984 by South Korean immigrants.
His economic and modern clothing and accessories became increasingly popular among young people in the coming decades and the brand became a fast -fashioned giant competitor such as Zara and H&M.
At its peak in 2016, there were 800 Forever 21 stores worldwide, 500 of which were located in the United States.
