Forever 21 Gone Bankrupt!

Due+to+financial+its+complications%2C+Forever+21+might+be+facing+catastrophe.+
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Forever 21 Gone Bankrupt!

Due to financial its complications, Forever 21 might be facing catastrophe.

Due to financial its complications, Forever 21 might be facing catastrophe.

Flickr

Due to financial its complications, Forever 21 might be facing catastrophe.

Flickr

Flickr

Due to financial its complications, Forever 21 might be facing catastrophe.

Addison M., Writer

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The popular clothing brand Forever 21 could be on the verge of collapse. 

On Wednesday, August 29, Bloomberg reported that this ‘fast fashion’ empire could be facing bankruptcy. This announcement expectedly sparked a massive uproar from the internet. 

Topshop similarly shut down all of its U.S. stores earlier this summer after facing its own complications with bankruptcy charges. In recent years, other retail store chains such as Sears, Payless, Claires, and most famously, Toys R Us faced bankruptcy, with varying degrees of success. In addition to the financial pressures on these businesses, a new rise in online shopping proposes a threat to stores nationwide. Some have termed this movement as the “retail apocalypse.”

Catering towards teens and young adults, the company does maintain an online presence. This, however, does not change the fact that the corporation’s business model is mainly oriented towards brick-and-mortar sales. These tactics have left the business vulnerable in today’s changing market. 

According to National Real Estate Investor, Forever 21 once brought in roughly $135-$165 in sales per square foot. Now that number has been estimated to have dropped to about $100 per square foot. 

A recent scandal including popular singer, Ariana Grande, may have factored into F21’s struggles. After Grande denied permission to use her image in an Instagram ad, Forever 21 used a look-alike-model in her place without her knowledge. Grande filed a lawsuit seeking at least $10 million. With the existing strains on the business, they may have some trouble meeting Grande’s demands. 

Some might argue that Forever 21’s actions created a situation that has made it nearly impossible to restore their sinking image.

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