Permanently 21, a one-time destination for shoppers that fell victim of its own rapid expansion and altering customer tastes, applied for Chapter 11 bankruptcy security Sunday. The independently held business based in Los Angeles said it will close up to 178 stores.
The company when had more than 800 stores in 57 nations. According to a news release, Permanently 21 gotten $350 million “to facilitate restructuring”: $275 million from JP Morgan Chase and $75 million from TPG Sixth Street Partners.
” This was an essential and essential step to secure the future of our Business, which will enable us to restructure our service and rearrange Permanently 21,” Linda Chang, Executive Vice President of Forever 21, Inc., said in a declaration.
Permanently 21 signs up with Barneys New York and Diesel USA in a growing list of merchants seeking insolvency protection as they battle online competitors. Others like Payless ShoeSource and Charlotte Russe have shut down completely.
Up until now this year, openly traded U.S. retailers have revealed they will close 8,558 stores and open 3,446, according to the worldwide research company Coresight Research. That compares to 5,844 closures and 3,258 openings in all of 2018.
Coresight approximates the store closures might number 12,000 by the end of 2019.
Forever 21 was founded in 1984 and, together with other so-called fast style chains like H&M and Zara, rode a wave of appeal among young clients that took off in the mid-1990 s.
The business’s appeal grew during the Great Economic crisis, when buyers sought fashion bargains.
But over the in 2015 or so, quick style has actually fallen out of design. Young consumers are disliking throw-away clothing and are more thinking about buying environmentally friendly products.