Forever 21 has officially filed for Chapter 11 bankruptcy and plans to shut down 178 out of 800+ stores.
According to CNN, Forever 21 filed for Chapter 11 bankruptcy due to the high demand of online shopping amongst their competitors. A letter was released to customers stating that the store closure decisions will be more focused on international markets rather than the U.S.
“We do however expect a significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the U.S.,”
RELATED STORIES:Forever 21 Prepares For Potential Bankruptcy Filing
Executive Vice President Linda Chang said in a statement that filing was an important decision based on the company’s future and securing its assets.
“[It is] an important and necessary step to secure the future of our Company, which will enable us to reorganize our business and reposition Forever 21.”
RELATED STORIES: Ariana Grande Sues Forever 21 For $10 Million
“The financing provided by JPMorgan and TPG Sixth Street Partners will arm Forever 21 with the capital necessary to effect critical changes in the U.S. and abroad to revitalize our brand and fuel our growth, allowing us to meet our ongoing obligations to customers, vendors and employees. With support from our key landlord and vendor constituents, we are confident we will emerge as a stronger, more competitive enterprise that is better positioned to prosper for years to come, and we remain committed to delivering the fast fashion trends that our customers have come to expect from Forever 21,”
Press play to learn more in the video below and let us know your thoughts on the company’s filing for bankruptcy.