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It seems that the popularity of online shopping has claimed another brick and mortar based business as victim. Forever 21 is in deep financial trouble.
High Snobiety is reporting that the fashion retailer has officially filed for bankruptcy. According to The Financial Times the brand plans to restructure their organization in an effort to minimize loss. This includes shutting down up to 300 of their stores across the world. According to the documents filed the Los Angeles, California based company is listing assets and liabilities between $1 billion to $10 billion.
In a formal statement listed on their site Forever 21 claims they are not shutting down their operations. “Essentially this allows Forever 21 to continue to operate its stores as usual, while the Company takes positive steps to reorganize the business so we can return to profitability and refocus on delivering incredible styles and fashion you love for many years to come. This does NOT mean that we are going out of business – on the contrary, filing for bankruptcy protection is a deliberate and decisive step to put us on a successful track for the future.”
This new filing is just another name in the bucket of retailers who are hemorrhaging money. In August the iconic New York City store Barney’s filed for bankruptcy protection.
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