The Fast fashion retailer Forever 21 is reportedly shortly before the closure of 200 branches, since its US operator, F21 OPCO, is preparing to initiate insolvency proceedings. According to Bloomberg News, this process is to begin next month, while a buyer for the remaining branches is being sought in parallel.
If no buyer is found, Forever 21 will probably liquidate its entire branch network with around 350 locations, the media company continues. The affected branches are said to have been writing losses for years, although the company is reportedly repeatedly held back due to financial difficulties.
The property rights to Forever 21 remain with the current parent company, the Authentic Brands Group, which licenses the trademark rights and intellectual property of the retailer to F21 OPCO. This company is now associated with Catalyst Brands, the owner of Jcpenney and Lucky, said Bloomberg.
Regardless of whether F21 is sold or liquidated by Catalyst, Authentic should already strive for license agreements for Forever 21 with other retailers and distributors. Forsever 21 had already registered bankruptcy according to Chapter 11 in 2019 and initiated a restructuring procedure that is to be closed and retreated as well as for retreat the markets in Japan, the EU and Great Britain led.
Later, the company was taken over by the Authentic Brands Group, the Simon Property Group and the Brookfield Property Group, which together wanted to promote stronger focus on the Gen z-target group, faster market launch processes and a sustainable supply chain.
Fashionunited asked Forever 21 and Authentic Brands Group for an opinion.
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