Forever 21 Files for Bankruptcy
Forever 21 has filed for bankruptcy and will close over 178 stores, including local and global ones. They will focus more on selling online until they are stable.
We all know Forever 21 for its chic and affordable clothing, but what we don’t know is that they have filed for bankruptcy. A while ago there were some rumors, but it’s confirmed. The news is spreading like wildfire, as many customers seem upset about it. They won’t close their manufacturing because they will focus on selling products online rather than in a physical store. They will close up to 178 locally and globally.
Since the evolution of the Internet, people prefer online shopping more than visiting malls. Therefore, we can see relatively less footfall in malls and heavy traffic online. Online shopping is not so much trusted in Pakistan, but in other parts of the world, that’s what people prefer. At the start of 2017, many flagship stores and retailers have filed for bankruptcy, including Sear and Toys ‘R’ Us. This is because people are shifting to online stores and prefer buying from Amazon, eBay or official websites of brands.
Forever 21 representatives said:
“We do however expect a significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the U.S.,”
This means that the customers in the U.S will not see much difference. They will close all stores in Japan and many other countries in Asia but will be operational in Mexico and Latin America.
Linda Chang, executive vice president for the company said:
“An important and necessary step to secure the future of our Company, which will enable us to reorganize our business and reposition Forever 21”
Their goal now is to focus on online shopping and marketing. Online shopping has gained popularity and their target market is teenagers, who are tech-savvy these days and always online. Hence, to target potential buyers, they will have to use mediums that their potential buyers prefer.
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