Forever 21 filling for bankruptcy

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Forever 21 filling for bankruptcy

Mattingly Sullivan, Staff Writer

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Forever 21 has filed for Chapter 11 bankruptcy. They are closing 350 stores globally and 178 stores in America.

It is unknown if the Wellington location will close, though many locations are having sales with items up to 90% off in order to liquidate their stores.

Since opening its doors in 1984, Forever 21 has been a popular store for finding a wide range of clothing and accessories at a reasonable price. Currently, the company is $500 million in debt. The company plans to restructure its business model, and that means closing many of its locations.

According to Forever 21’s Executive Vice President,” Linda Chang, the store’s financial troubles are at least in part due to competition with online shopping. Not as many shoppers visit the brick and mortar Forever 21 stores when they can shop at whatever store whenever they want online. Stores like Zara, Zaful, and Romwe are getting so many shoppers from their low priced clothing.

These financial troubles come after Ariana Grande announced last month she was suing the company for $10 million after using her lyrics and image to promote their brand without her approval.

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