The fast-fashion and brick and mortar world of stores are having extreme financial issues. The latest to fall victim to the changing markets of consumers is women’s clothing brand Forever 21. The company announced it is filing for bankruptcy on September 29th.
Forever 21’s fashion was aimed at young women who wanted cheap basics and trendy styles. The American fashion retailer filed for Chapter 11 bankruptcy protection in Deleware. In the official documents, Forever 21 reported liabilities between $1 billion and $10 billion owed to more than 100,000 creditors.
The company will reportedly close 350 stores worldwide as a result, including all operations in Canada. It is yet to be determined how many stores will close in the United States.
In a letter to its customers, Forever 21 said that filing for bankruptcy was the “right path for the long-term health of [their] business.”
“Once we complete a reorganization, Forever 21 will be a stronger, more viable company that is better positioned to prosper for years to come. We look forward to continuing to provide you with the great service and curated assortment of merchandise that you expect from us,” said the company.
They reassured customers that operations would continue as normal during the bankruptcy process.
“Our stores are open and it will continue to feel like a normal day – you will not see any changes in our stores, gift cards will continue to be accepted, and our policies, including returns and exchanges, remain the same,” said the company.
Stores like Forever 21 struggle to stay afloat in this day and age with online shopping and rising rent prices for brick and mortar stores. So far in 2019, retailers in the U.S. have announced more than 8,200 store closings, exceeding last year’s total of 5,589, according to CNN.