"Forever21 Plans to Close Over 200 Stores Due to Financial Difficulties"

Fast fashion retailer Forever21 is reportedly preparing to close at least 200 additional stores.

On the 19th (local time), Bloomberg News cited sources reporting that Forever21's operating company, based in the United States, is preparing to close at least 200 stores as part of a bankruptcy process expected to begin as early as next month.

An anonymous source said that some of the stores scheduled for closure have recorded losses for several years. Once the bankruptcy plan is finalized, the company plans to find buyers to acquire the remaining stores, and if no suitable buyers emerge, Forever21 may liquidate all approximately 350 stores, the source added.

Forever21 was founded by Jang Dowon and Jang Jinsook, who immigrated from Korea to California, USA, in the 1980s. At one point, the company operated over 500 stores in the United States alone and at least 800 stores worldwide, but faced financial difficulties and filed for bankruptcy protection in 2019.

According to Bloomberg, a representative from Catalyst Brands, Forever21's operating company, said, "We are working on cost reduction and store operation optimization while exploring strategic options including a sale. We are continuing our efforts, but no final decision has been made regarding these procedures."

Currently, the Forever21 trademark and intellectual property rights are owned by Authentic Brands, a global brand management company. Authentic Brands plans to retain ownership of the Forever21 brand even if the bankruptcy process proceeds. The company intends to license the Forever21 brand to other existing retailers and distributors regardless of the sale or liquidation of the U.S. operating company, according to sources.

This content was produced with the assistance of AI translation services.