Clothing brand loved by women will close 200 stores worldwide: its stores will no longer operate

In recent days, American media have been reporting that the well-known clothing brand Forever 21 is facing a second bankruptcy.

Founded in 1984 in Los Angeles, California, the company has managed to expand around the world. It is currently operated by Authentic Brands Group and Simon Property Group, and has around 540 points of sale worldwide.

Forever 21 has gained great recognition for focusing its operations on the entire family, as in its stores it is possible to find accessories, beauty products, household items and clothing for women, men and children.

The international news agency ' Reuters' mentions that the chain specialized in fashion would be preparing to close at least 200 of its commercial establishments around the world.

The US company has decided to file for bankruptcy , which is expected to begin next month, Bloomberg News reported, citing people familiar with the matter.

According to the ' Bloomberg News ' portal, the bankruptcy plan that Forever 21 would undergo would seek to find a buyer for the retail stores that remain open , in case a qualified buyer did not emerge, they explained that the chain would liquidate all of its nearly 350 stores in the world.

It is known that before facing the first liquidation and bankruptcy , the company had more than 500 establishments in the United States and 800 around the world.

“Forever 21’s operating company, which is the licensee of the brand in the United States, continues to explore strategic options, including a potential sale, while reducing costs and optimizing its store footprint, ” a representative for Forever 21’s operating owner Catalyst Brands wrote in an email. “Efforts are ongoing and no final decisions have been made regarding the outcome of the process.”

In Colombia, the brand has very little presence; however, its establishments are located in Bogotá, Medellín and Bucaramanga , with the store on Calle 82 in the country's capital being the most recognized.

In 2019, the clothing brand faced bankruptcy proceedings. To resolve the situation, the Authentic Brands group, which has also owned brands such as Quiksilver, Billabong and Volcom, acquired the company in February 2020 to avoid bankruptcy.

Despite the structural renovation, Forever 21 continued to have financial problems , and after more than five years, its owners decided to resort to a strategy to avoid permanent closure.

“As previously announced, Catalyst Brands is exploring a variety of strategic options for Forever 21’s operations, and we are working diligently to achieve the best possible outcome,” a company spokesperson said in a statement.

ALEJANDRA HERNANDEZ TORRES

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