Forever 21 Declares Bankruptcy

Forever 21 Declares Bankruptcy

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Forever 21, one of America’s biggest apparel retailers, files Chapter 11 bankruptcy protection on September 29.

According to investopedia.com, “Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor’s business affairs, debts, and assets. Named after the U.S. bankruptcy code 11, corporations generally file Chapter 11 if they require time to restructure their debts. This version of bankruptcy gives the debtor a fresh start. However, the terms are subject to the debtor’s fulfillment of his obligations under the plan of reorganization.”

The company expressed that they had been struggling with the shifting market places such as online shopping and ever-changing consumer trends.

Forever 21’s young market had a change of heart and now prefers sustainable fashion to throw-away clothes

Despite closing down hundreds of stores across forty countries, their online shops in the United States will remain accessible.

Recently, pop star Ariana Grande sued the retailer for $10 million, accusing them of copying her looks from the “7 Rings” music video and even hiring a “strikingly similar” model.

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