Forever 21 Might Not Be Forever After All.

forever 21 is not forever
forever 21 is not forever

The young’s favorite retail store forever 21 might go bankrupt, the private company owns more than 800 stores; in more than 50 countries and until 2016 they were still opening stores. Unlike other stores where they close already by that time.

We think the bankruptcy is a way for the company; in order to get out of the leases and close the store at the least possible cost; which is one of the main advantages that bankruptcy process gives.

The company did not make any comments, but we can observe that young shoppers are experiencing a shift in behavior. Where they are heading towards online shopping rather than a mall shopping experience; due to all that technology advancement and easement of the process of online ordering.

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Hence the company is experiencing a hard time driving traffic through the stores. They are not the only ones alongside Aeropostale going bankrupt in 2016; but still managing to keep some stores open.

Forever 21 unlike many retailers its not owned by private equity firms or hedge funds; the owners who started the shop in LA are a married couple Do Won and Jin Sook; immigrants who are responsible for creating this huge empire; that generates annual sales of $3.4 billion and personal a net worth of $1.5 billion.