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It isn’t easy being middle-aged . . . even for a business.
The company behind Forever 21 has filed for bankruptcy for the second time in six years. This time, they’re closing all stores in the U.S.
Forever 21 has been struggling for years, and they’ve blamed a lot of their troubles on the competition from foreign “fast fashion” retailers like Shein and Temu . . . especially after online shopping boomed during the pandemic.
In 2019, Forever 21 had about 800 locations worldwide, with 43,000 employees, but they closed 30% of them in their first bankruptcy filing. There are still roughly 540 locations around the world.
There will be a “wind-down” of business operations, including liquidation sales. The “Forever 21” brand might live on through licensing deals, but this is basically the nail in the coffin.
Forever 21 was “over the hill” at 40 years old. The company was founded by a Korean couple in Los Angeles in 1984, selling clothing designs that were similar to ones that were popular in South Korea at the time. (CNN / Wikipedia)
