Everybody’s favourite store to hate, Forever 21, is preparing to file for bankruptcy, reports Bloomberg.
Sources of the fashion retailer’s future told the business site that cash is dwindling and turnaround options are fading out fast. They’re currently in talks for additional financing and working closely with advisers to restructure their debt. However, negotiations are not in Forever 21’s favour.
Based on upper management’s current efforts, Forever 21 will probably file for Chapter 11 bankruptcy.
This means that stores won’t necessarily close, but the company will step back from meeting cost deadlines so they can restructure the company. During this time, Forever 21 will likely close underperforming stores and give their entire brand a facelift. Anytime a company files for Chapter 11, the goal is reorganizing and resizing so that the retailer can start fresh. In fact, Nasty Gal did the exact same thing back in 2017.
Do Won Chang, co-founder of Forever 21, has always been focused on controlling a major stake of the company. This ultimately limited their funding options, which stifled growth opportunities. However, this isn’t the only contributing factor to Forever 21’s demise.
In fact, Forever 21 hasn’t been doing well for a number of reasons.
For starters, nobody likes their clothing’s dwindling quality. Furthermore, I can’t remember the last time I found a nice outfit that actually fits from Forever 21. They now target teenage girls who wear crop tops and spandex all day like Kim Kardashian. Anything remotely normal to wear, such as floral-printed rompers, sweaters, or jumpers, come in little to no variety. Plus they only ever carry small sizes in store, which forces people to shop online.
As a young adult who struggles to find work appropriate clothing, Forever 21 is far from practical for everyday wear. Their dresses are short or see-through, their material often looks cheap, their swimwear isn’t meant for people with curves, and their adorable vacation wear makes you sweat like a pig.
Plus, half of what they sell looks great until you try it. That’s just annoying!
Furthermore, their stores are disastrously unorganized and messy! Sure, they carry numerous styles of clothing to attract a variety of customers. But what good does that do when there’s literally no structure? Honestly, the chaos probably drives people away.
I will, however, commend Forever 21 in several areas. These are all reasons why I don’t want them to vanish for good.
Believe it or not, they carry great plus-sized clothing both online and in stores. They offer tremendous variety at great prices, especially compared to other retailers. Also, their clothing still stays true to younger fashion trends, unlike most other stores.
Additionally, they offer great accessories and shoes. Even if the quality isn’t the greatest, you can at least get a good season’s wear out of the shoes while paying next to nothing for them. Finally, they are great for last-minute shopping.
However, these limited perks don’t add up to the current nightmares you encounter when shopping at Forever 21.
The company lacks quality customer service both in-store and online, You rarely receive help, then there’s the joke of a credit program. Oh, and have you ever tried to return or exchange anything? Well, if so, you know what an undertaking that is.
As a whole, their stores just aren’t appealing to people over the age of 15, even though they try so hard to draw people older. They just don’t have what it takes anymore, despite being popular since their opening in 1984 and having over 800 stores worldwide.
Long story short, I really do hope that Forever 21 rebuilds their brand and takes this bankruptcy filing seriously. If that happens, they do have the potential to improve their stores. Because let’s face it, with Charlotte Russe now gone, where else can we go for last-minute clothes before an event or cheap generic clothes?
Feature Image from Instagram