Business

Forever 21 files for bankruptcy protection

The company intends to close 180 of 500 stores in the United States. The Latin American operation, however, should be maintained

One of the Forever 21 stores in the US
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The US fashion retailer Forever 21 informed this Sunday (29th) that it will file for bankruptcy protection today. According to Estadão Conteúdo, the company intends to close 180 of 500 stores in the United States and leave the European and Asian markets. 

The Latin American operation, however, should be maintained – the company has been operating in Brazil since 2014. Founded in 1984, Forever 21 has 815 stores in 57 countries, according to The Guardian.  About 300 of these stores are outside the US.

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In the United Kingdom, also according to The Guardian, there are three stores, which should have their operations transferred to an intervener, a company called RSM. For the British newspaper, the retailer is another victim of changing consumer habits that have been favoring e-commerce over physical purchases.

The company is not publicly traded and has not reported transaction figures, but disclosed that it will seek to maximize results from remaining US stores.