Retail Apocalypse Claims Another Store As Forever 21 Preps For Bankruptcy
As Amazon and other online commerce continues to dominate the marketplace, the retail apocalypse continues to claim business after business, making bankruptcy and established stores closing their doors seem like the norm. Carol’s Daughter, Victoria’s Secret, Payless, and more have all fallen in the path of destruction, and now, there’s another big name looking at filing for bankruptcy.
The latest victim is clothing giant Forever 21, according to reports from Bloomberg. The retailer is said to be in the early stages of prepping for bankruptcy.
Bloomberg reported earlier this month the brand was seeking a loan to create cashflow ahead of the holiday retail season. It seems like those negotiations have stalled as investors and lenders are seeing a trend of brick and mortar stores struggling to convert customers to in-store to sales. Plus, in the eyes of a lender who has a line of people looking to borrow money–a lot of whom have innovative tech ideas that will bring in B-I-L-L-I-O-N-S–the clothing store that likely doesn’t even carry your size isn’t exactly a priority.
Luckily, bankruptcies aren’t all bad, as it would give the retailer the opportunity to close stores not meeting revenue goals & refocus the company vision.
Forever 21 has been accused of stealing from smaller designers a multitude of times, and just last week, the brand was in hot water for including diet bars in plus size orders. It seems like karma is on its way to them with a deliciously-prepared plate.