Is Forever 21 Filing For Bankruptcy?

by: Well Made Clothes Staff | 4 months ago | News

Image: vast amounts of clothing waste. Image source.

A number of big brands have filed for bankruptcy over the past few years and now Forever 21 looks like it might be about to join the likes of Nasty Gal and American Apparel. According to the latest report from the Business of Fashion, the US fast fashion retailer is thought to be preparing for a potential bankruptcy filing. 

This news comes as the retailer’s cash dwindles and turnaround options fade. “The company has been in talks for additional financing and working with a team of advisers to help it restructure its debt, but negotiations with possible lenders have so far stalled,” writes BoF. “Focus has thus shifted toward securing a potential debtor-in-possession loan to take the company into Chapter 11, they said, even as some window remains to strike a last-minute deal that keeps it out of court.”

Founded in 1984, Forever 21 operates more than 800 stores in the US, Europe, Asia and Latin America. So if Forever 21 does file for Chapter 11, then, this could represent a significant issue for its landlords in malls across the world. This is bad news for jobs, but does suggest that the trend in fashion might finally be shifting away from the major fast fashion giants and their rampant cycle of waste – in favour of buying less and supporting more responsible fashion overall. 

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