Panel, including Jay Woods and Phil Blancato, joins ‘Claman’s countdown’ to talk about how investors respond to warmer than expected inflation information and poor retail sale.
The US Operations Company Forever 21 has applied for Chapter 11. Bankrot On Sunday, marking the second time in six years.
The F21 OPCO made the move after the merchant was once known for its affordable, trendy fashion among teenagers and younger adults, he could not find a buyer for his approximately 350 American stores.
With most shops within shopping centers, the seller says he is mutilated by a reduction in foot traffic and increased competition with online traders.
Some of the greatest e-commerce competitors The company is Amazon, Shein and the topic.
Forever 21 probably close the remaining stores with other bankruptcy
Customers pass by the advertisements on the opening day of the giant for e-commerce fast models Shein, which is on Thursday, October 19, 2023. (Allen J. Schaben / Los Angeles Times / Getty Images)
Forever 21 was founded in Los Angeles in 1984 by South Korean immigrants. By 2016, about 800 stores around the world worked, and 500 those in the United States.
The clothing chain faced problems from his first bankruptcy trip in September 2019, during which he closed over 150 of his 534 stores and sold the rest.
Fast Fashion Banchrot Forever 21 is not fast enough to satisfy the millennium Fomo
Pedestrian walk at Forever 21 29. August 2019 in San Francisco. (Justin Sullivan / Getty Images)
The F21 OPCO is currently owned by Catalyst Brads, an entity formed on January 8th by merging the previous owner Forever 21, Sparc Group, and JC Penney, a line of department stores owned by 2020 by the Mall operator and Simon Property GRUP.
Forever 21 files to protect against bankruptcy
Signi sales advertising throughout the store is shown in the window at Forever 21 store, which is about to close on 20 February 2025 in San Francisco. (Justin Sullivan / Getty Images)
Last month, when news of the upcoming bankruptcy appeared, the source familiar with this question said to Bloomberg that the company was preparing to close at least 200 of the remaining 350 locations as part of the bankruptcy procedure.
Now, reports Reuters, F21 OPCO plans Sales liquidation his shops as he passes through the court that passed in court and marketing proceedings for some or all his assets.
Shein’s pressure, the topic accelerates closing retail
Forever 21 store in New York on Friday, February 7, 2025. (Yuki iwamura / Bloomberg via Getty Images / Getty Images)
His shops and websites in the United States will remain open and continue to serve customers, and his international trade remains no influence.
The company listed its estimated property ranging from $ 100 to $ 500 million, according to a submission with a bankruptcy court in Delaware County, which he received Reuters, and an obligation to ranging from one billion to $ 10 billion. The submission has shown that there are between 10.001 and 25,000 creditors.
| Dice | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | Amazon.com Inc. | 195.74 | -2.21 |
-1.12% |
| SPG | Simon Property Group Inc. | 166.85 | +5.71 |
+3.54% |
| Bam | Brookfield Asset Management Ltd. | 47.94 | +1.01 |
+2.15% |
In case of successful sales, Forever 21 may turn away from the full wind of surgery to facilitate transaction.
The Forever 21 trademark and other intellectual ownership are owned by authentic brands. Authentic will continue to control the brand, which could live in some form. Executive director Authentic Brands Jamie Salter said last year that acquisition of Forever 21 “is the biggest mistake I made.”
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“Forever 21 is one of the most recognizable names in a quick way. It is a global brand rooted in the US with a strong future forward. Retail changes, and like many brands, forever 21 adapts to creating the right balance in stores, e-trade and wholesale,” Jarrod Weber, Global President inveted business.
“The decision of our US license to restructure its business does not affect the intellectual property of Forever 21 or its international business. It is an opportunity to accelerate the modernization of the brand distribution model, setting it up and leading it in a rapid way for decades,” Weber added.
Fox Business’ Daniella Genovese and Reuters contributed to this report.
