Forever closing stores forever 21 accelerated with competition from Shin and Tememo

Hundreds of forever 21 shops in the US It will close by the end of March after the huge years of economic pressures and relentless competition in fast fashion space.

F21 OPCO, Prester 21 Operator and brand license shops in the United States, submitted a request for protection against bankruptcy for bankruptcy for Delaware County for the second time in six years.

Forever 21 is likely to close the remaining second bankruptcy stores approaching

“We have failed to find a sustainable way ahead, given the competition from foreign fashion companies, which have managed to use the exemption of De Minimis to undermine our price brand and margin, as well as increasing costs, as well as cost increases, as well as increasing costs, as well as cost increases. Economic challenges They affect our basic clients and developing consumer trends, “the F21 OPCO CFO Brad Sell said in a statement.

The company said that as it reduced its operations in the United States, it continues to look for a buyer for some or all its funds. Sarah Jos, a bankruptcy expert and head of legal in Denvir, believes she is “unlikely to appear white knight to buy all or part of her retail locations.”

According to court documents, the process of closing the store is already underway with the first wave of the worst forever 21 locations, which are closed by Sunday, March 30th.

According to court documents, closure will affect approximately 236 stores during the first wave of closure, as the company says it is “unlikely that every third party would be interested in acquiring these locations as part of a concern transaction”. Other stores are expected to close their doors for good by May 1.

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Jos noted how the fast fashion chain continued to oppose the challenges since the first trip through bankruptcy in September 2019, when the company closed more than 100 of its 534 stores and sold the rest at a consortium of customers.

Forever 21 owners of authentic Group brands and Simon’s ownership group have created a joint investment, Spark Group to maintain the company in 2019. In January, Spark Group teamed up with JCPenney to form a new organization, catalyst brands.

Fashion retailers join the retail of retail and retail sales for sewing and crafts, Joan, all re -submitted for protection. There are 20 chapter 11 submissions since the beginning of 2024, but 25 retail chains have at least two bankruptcy files in 2016, according to Dendwire data.

“Trafficking in brick and mortar, as 21 forever, work in a highly competitive small environment, where the price of business is expensive and increases with inflation rates,” Jos said, adding that “the final nail in the low fashion traffickers coffin like Forever 21 should compete with Ultra low cost of retailers online Such as Sheen and Temu, who are able to use the exemption of De Minimis which excludes goods worth under $ 800 from import duties and tariffs. ”

Sheen and Temo offer a number of low -cost products and clothing. Companies face criticism of work practices, environmental concerns and business ethics, such as intellectual property violations.

Meron Mercer, Head of Global Coresight Research Research, also noted as competing pressures on these fast fashion platforms, which have been relevant in recent years as as Inflation consumers They used their inexpensive prices, will continue to rise in the 2025 closure.

The company estimated that there will be 15,000 closures this year. The firm also envisioned about 5,800 stores at nationally this year, but resulted in net loss.

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However, Jos said this does not mean the end of the company.

The company’s trademark and intellectual property, owned by an accompanying authentic brand, is not part of bankruptcy and will live in some form, Jos said.