Forever 21 going under


Courtesy ofRacked New York

From Riches to Rags- Forever 21 in NY Times Square, has officially closed down permanently. It’s one of the first few 350 planned to be closed down.

Khrystyna Stets, Broadcast Coordinator

World wide clothing retailer Forever 21 is filing for potential bankruptcy, a company that has held more than 800 stores in 57 countries is now $500 million in debt due to their inability to reach a deal to restructure. There are still stores open throughout the country and the online website is still running. A spokesperson told BBC News that the chain expects to close 350 stores worldwide, a little more than half of its locations, and “most, if not all” European locations will close.

It is estimated by National Real Estate Investor that Forever 21 store now only brings in around $100 in sales per square foot, compared to previous years when they made $135-$165 per square foot. The National Real Estate Investor also notes that “fast fashion” is falling out of trend and they have observed an increase in interest in higher quality and more environmentally sustainable products.

“Our stores are open, and it is our intention to continue to operate the vast majority of U.S. stores, as well as a smaller amount of international stores,” Forever 21 said in a statement.

Founders of Forever 21, Do Won and Jin Sook Chang have a combined net worth of $1.5 billion dollars. Despite immigrating to the United States in 1981 with only $11,000, they both still own the company which is not common for most founders of chains, especially one of the largest specialty apparel retailers in the country, neither have publicly commented on this news.

Forever 21 is not the only clothing brand to go bankrupt. Shops like American Apparel, Wet Seal, Delia’s, Payless ShoeSource, Gymboree, Charlotte Russe, Charming Charlies and Topshop have all filed for bankruptcy. 

Forever 21 plans to continue to maintain their website, but also strive to rebound their sales and retail.