Forever 21 has filed for Chapter 11 bankruptcy protection. The US fast-fashion giant announced that it will make its exit from most international locations in Asia and Europe. The move comes as traditional retailers continue to struggle against the rise in competition posed by online retailers.
The company said it plans to “exit most international locations in Asia and Europe” but would continue to operate in Mexico and Latin America. It expects to close up to 350 stores worldwide, a spokesperson said, including as many as 178 US stores.
Forever 21 sells inexpensive, trendy clothes and accessories, and competes against brands such as Zara and H&M.
Forever 21 had over 800 stores in 57 countries across the globe. The brick and mortar chain announced that it would now file a motion to close up to 178 of its stores. However, the decision as to which domestic store will be closed is still pending
Forever 21 India will not be impacted,” announced the brand’s Indian franchise partner, Aditya Birla Fashion and Retail Ltd. The Aditya Birla Fashion and Retail had bought the online and offline rights for Forever 21 in India from DLF Brands in 2016.
The group clarified that bankruptcy filing by the US-based fast-fashion retailer will not in any way impact its business in India. Forever 21 India, will hence, continue to operate its stores like before. Currently, the franchisee runs about a dozen outlets of Forever 21 in the country.
