Forever 21 to close 178 stores after filing for bankruptcy

Forever 21 file for Chapter 11 bankruptcy protection in the US. The company said it plans to “exit most international locations in Asia and Europe but would continue to operate in Mexico and Latin America. The company plans to overhaul it global business, closing between 300 and 350 stores including 178 store in the United States after stalling attempts to secure additional financing and restructuring their debts. Forever 21 also announced it is seeking to pull out of Japan and Canada by October due to “continued sluggish sales”.

For years teens have flocked to Forever 21’s massive stores for their trendy inexpensive clothes and accessories. Founded in 1984, Forever 21 ha lost its way over the past five years and fallen out of favour with young US shoppers looking for relatively cheap clothing.

The company struggled against rising competition from online rivals as well as from the likes of Zara, H&M and Primark.

“The decisions  as to which domestic stores will be closing are ongoing” the retailer said it will focus on profitable core part of its operations.