The iconic teen Store announced it would file for Chapter 11 bankruptcy Sunday as Styles shift and physical stores are Not the draw they once were.
The company will be closing up to 180 stores in the United States, as well as ceasing brick-and-mortar operations in 40 countries. However, Forever 21 will continue to operate online, and in many of its physical locations across the United States.
The Chapter 11 bankruptcy comes because of dwindling sales difficulties in sorting out finances. After launching Forever 21 in Los Angeles in 1984, the retailer grew into a mall staple, peaking at 700 stores worldwide. However, today, the company faces the familiar issue of how to stay profitable as foot traffic becomes less important.
Many of its stores are connected by large leases to malls, which have suffered weaker traffic and sales as consumer patterns change.
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