Forever 21 was the ‘American Primark’, the retailer all the teens flocked to. Now it faces bankruptcy. Retail Week looks at what went wrong and what lessons can be learned.
Forever 21 was the American teen’s shop of choice in the early noughties. With the latest trends at pocket money-friendly prices, the store was a staple of malls across the US.
However, the fashion brand, which was founded by South Korean immigrants Do Won Chang and Jin Sook Chang in 1984 with just $11,000 of savings, is now facing potential bankruptcy as it failed to keep up with the intense competition in young fashion and adapt to the digital age.
The retailer is reportedly preparing to file for Chapter 11 bankruptcy – the American equivalent of a CVA – imminently.
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