According to AxiosThe company operates 354 stores and has more than 9,200 employees such as F21 OPCO LLC, which operates All Forever 21 Stores in the United States
Here is everything that consumers need to know about the last Forever 21 bankruptcy presentation and as the end of an era indicates for shopping centers.
Who owns the Forever 21 brand?
Forever 21 is owned by Catalyst Brands, which was formed on January 8 through the merger of the Sparc Group, the previous owner of the shops chain and JCPENNY. The company also oversees the beloved shopping centers such as Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica, according to a Start -up of news.
Catalyst Brands said it was “to explore strategic options for the operations of Forever 21”.
The matrix company hopes to find a buyer for the business or part of its assets in an agreement that can save the brand and its national shops to close -definitively.
Failure presentation is different weather
Forever 21 initially presented the bankruptcy of Chapter 11 in 2019. Now, presenting -for the second time in six years, the company has not maintained sales, as customer traffic to shopping centers has declined as the brand competes with Chinese fast fashion brands such as Temu and Shein, Fox 32 Chicago reported.
The company presented the bankruptcy Sunday. Previously, in February, Forever 21 announced the dismissal of 358 employees from its corporate office, as the company also obtained shops closures across the country. USA.
“Although we have evaluated all options To better position the company for the futureWe have not been able to find a sustainable path forward, given the competence of the fashion companies of foreign fashion, which have been able to take advantage of the exemption of Minimis to emphasize our brand on prices and margin, “said Brad Sell financing manager in a statement obtained by obtained by The associated press.
How much debt for Forever 21 in debt?
Atmosphere reported that Forever 21 presented a bankruptcy, with more than $ 1.58 billion in debt after losing more than $ 400 million over the past three years. “He lost $ 150 million only by 2024 and was expected to lose approximately $ 180 million by 2025,” according to In the court documents submitted in a failed court of Wilmington, Delaware.
“The retailers of bricks and mortars such as Forever 21 operate in a highly competitive environment where the cost of doing business is expensive and increasing with inflation rates,” Reuters Sarah Foss, responsible for the legal and the restructuring of Deuterwire, told Reuters.
Forever 21 was founded in Los Angeles 1984 by Korean immigrants, and has since become a fashion base for adolescents and young people in shopping centers across the country, according to Reuters.
So, all the Forever 21 stores are closed and the company will look for a new owner?
Many reports indicated on Monday at the beginning that all stores would close. News ABC He reported that North -American locations will remain open at least, saying in an article that the company “will keep North -American stores and the North -American website open during the process while searching for a new buyer.”
And although the shops will be open for the moment, the liquidation sales will be made.
“In case of successful sale, the company may be a complete deployment of operations to facilitate a concordance transaction,” said the retailer, according to ABC News. “The company believes that this double -way process will better maximize optionality and value.”
Still, there is a mixed messaging, like People He reported that the company was closing all locations, and its two main shops in New York City were named in court documents. People also say that “the closure must be started on May 27 and will end on June 10. Forever 21 stores outside the United States are operated by other graduates and” will continue to work in the ordinary course “.
