Ladies and gentlemen, it’s officially the end of an era! While many fashionistas loved browsing the racks at Forever 21, we’re afraid that the retail giant may have to take a loss and file for bankruptcy. What does this mean for fans of the brand you may ask? Many locations may have to close their doors!
According to Bloomberg, the company has been working tirelessly to avoid bankruptcy. “The company has been in talks for additional financing and working with a team of advisers to help it restructure its debt, but negotiations with possible lenders have so far stalled,” Bloomberg reports. “Focus has thus shifted toward securing a potential debtor-in-possession loan to take the company into Chapter 11, they said, even as some window remains to strike a last-minute deal that keeps it out of court.”
Naturally, a bankruptcy filing would give the retailer a little bit of room to close down underperforming stores and help rebuild the business. However, this move may affect some of the biggest mall management companies. Bloomberg reports that if Forever 21 closes a significant number of stores, landlords such as Simon Property Group and Brookfield Property Partners (two of the largest mall owners in the country) may have trouble filling the vacancies.
Most people blame fast fashion brands such as Fashion Nova and Pretty Little Thing for the decline of many stores. Some people also blame the fact that the brand has stolen images of hip hop stars and have even been accused of sending of diet bars with plus size orders as the culprit for its demise. While this all may be true, we can’t deny that consumer shopping habits change like the wind. In order for retail locations to stay ahead of the game, they must provide shoppers with what they need.
While there is no word on the retailer closing any of its 800+ locations in Asia, Europe, Latin America and the U.S. at the moment, it hasn’t stopped shoppers from anticipating the inevitable. This move is definitely troubling for business, but Forever 21 shoppers are green with delight! The possibility of stores closing means one thing- closeout sales!
In the meantime, Black Twitter has been on one since the news broke. Here are some of the funniest and real reactions:
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