Forever 21 officially closes its doors. It is believed that the fast-fashion retailer is preparing to close all 354 US branches on May 1st.
This emerges from court documents that are available to the US daily newspaper USA Today. The company’s operator, F21 OPCO, had been granted a deadline until April 30 to find a buyer for the brand. However, such a party has not reported. Therefore, all leased branches of Forever 21 are to be closed in the USA. It should be noted that many have already started to close on April 1st. A reference to the company’s website says that the international branches will continue to be operated.
Forever 21 had filed for bankruptcy in March because the competition between the fast fashion giants increased. The company also mentioned increasing costs and economic challenges as other causes.
It was the second time within six years that the company returned to Chapter 11 protection, this time by the current parent company, Authentic Brands Group, which licenses the trademark rights and intellectual property of the retailer to F21 OPCO. This company is connected to Catalyst Brands, the owner of Jcpenney and Lucky.
In accordance with the bankruptcy application, Forever 21 would liquidate his retail network if no buyer was found. At that time, a spokesman for the company told the Bloomberg news agency that one continues to “check strategic options and at the same time look for ways to reduce the costs in our companies and to optimize our branch presence”.
Fashionunited asked Forever 21 and his parent company, Authentic Brands Group, a comment.
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