成人X站

Forever 21 has filed for bankruptcy protection聽聽and plans to close down its U.S. business as traffic in U.S. shopping malls fades and competition from online retailers like Amazon, Temu and Shein intensifies.

F21 OpCo, which runs Forever 21 stores, said late Sunday that it will wind down the business in the U.S. under Chapter 11 bankruptcy protection while determining if it can continue as a business with a partner, or if it will sell some or all of its assets.

鈥淲hile we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin,鈥� Chief Financial Officer Brad Sell said in a statement.

罢丑别听聽lets shipments headed to U.S. businesses and consumers valued at less than $800 to enter the country tax free and duty free.

Forever 21 stores in the U.S. will hold liquidation sales and the website will continue to run while operations wind down. The retailer鈥檚 locations outside of the U.S. are run by other licensees and are not included in the bankruptcy filing. International store locations and websites will continue operating as normal.

Authentic Brands Group owns the international intellectual property associated with the Forever 21 brand and may license the brand to other operators, F21OpCo said.

Jarrod Weber, Global President, Lifestyle at Authentic Brands Group, said the restructuring lets Forever 21 鈥渁ccelerate the modernization of the brand鈥檚 distribution model, setting it up to compete and lead in fast fashion for decades to come. We鈥檙e building a direct creation-to-shelf model that moves faster.鈥�

He added that, 鈥淲e are receiving lots of interest from strong brand operators and digital experts who share our vision and are ready to take the brand to the next level.鈥�

Forever 21 first filed for聽聽in 2019. The following year, it was acquired by a聽聽of parties including Authentic Brands Group and mall owners Simon Property Group and Brookfield Property Partners. In early January, Forever 21鈥檚 parent company, Sparc Group, merged with JCPenney to form Catalyst Brands, a new entity that also includes brands like A茅ropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica.

Forever 21 joins a slew of other retailers that have filed for Chapter 11 or are liquidating in recent months as retailers face a slowdown in consumer spending and are navigating rising operating costs amid inflationary pressures. They include fabric and crafts retailer聽听补苍诲听. In February, Outdoor apparel seller聽聽which has operated stores for surfer and skater-inspired labels like Quiksilver, Billabong and Volcom, filed for bankruptcy 鈥� and said it plans to shutter its locations across the U.S.

From Jan. 1 through March 14, U.S. retailers have so far announced 3,735 store closures, according to Coresight Research鈥檚 weekly tracker.

Forever 21 had been battling a host of macroeconomic challenges as well as its own issues.

Forever 21 was founded in 1984 and, along with other fast-fashion chains like H&M and Zara, rode a wave of popularity among young customers in the mid-1990s. Their popularity grew during the Great Recession, when shoppers were seeking bargains. But Forever 21 went on an aggressive expansion just as shoppers were moving more online. Critics have said that Forever 21 was too slow to embraice online shopping.

The company also faced stiff competition from the likes of Shein and Temu, which churn out trendy items that are cheaper than what Forever 21 offers. For example, Forever 21 sells T-shirts for around $10. Temu has them for $5.

Neil Saunders, managing director of GlobalData, said in a statement that part of the problem now is that Forever 21鈥檚 stores are too big for its current needs and it鈥檚 in malls with not enough foot traffic.

鈥淔orever 21 was always a retailer living on borrowed time. Over recent years it has been hit with dual headwinds from a weak apparel market and stiff competition from cheap Chinese marketplaces,鈥� he said. 鈥淏oth things have eroded its standing and depleted its market share.鈥�