Forever 21: bankruptcy and branch closures - what does that mean for us?

Forever 21: bankruptcy and branch closures - what does that mean for us?

The US Fast-Fashion chain Forever 21 is again facing a financial crisis and has applied for bankruptcy on its business due to a “dwindling interest”. This is already the second application for bankruptcy within just six years, which was submitted to the Delaware District Court on Sunday, such as "https://fashionunited.de/nachrichten/business/forever-21-ldet-insolvenz-an/201909303205"> Fashionunited . The liabilities amount to up to five million US dollars, while the company's esteemed assets fluctuate between $ 100 and $ 500 million. Up to 25,000 creditors are affected, but Forever 21 emphasizes that this step is not the end, but a new beginning to restructure the company and better position themselves in the competitive retail landscape.

support from investors

In the explanation of Linda Chang, the Executive Vice President of Forever 21, it is emphasized that the company has already received $ 350 million from investors to support the restructuring measures. JPMorgan Chase Bank led the financing with $ 275 million, while a further $ 75 million of TPG Sixth Street Partners and their associated funds were contributed. Chang is confident that this financial support will enable Forever 21 to implement the necessary changes in order to revitalize the business in both the USA and internationally. The website and the shops remain open in the USA, while international operation in at least 57 countries, including in Vienna, is not affected, as the Krone reported.

Nevertheless, Forever 21 has announced that it can optimize its branch network with the intention of closing up to 178 of its over 500 branches in the United States and withdrawing from most international locations in Europe and Asia. After many years in which the company was known for its fashionable and affordable products, it will now be necessary to concentrate on the core markets and to strengthen the existing customer relationships. In Mexico and Latin America, too, the company will remain active, while it is planning to continue the services, including gift vouchers and returns, in accordance with the company guidelines.