Latest news with #Forever21
Time of India
6 days ago
- Entertainment
- Time of India
Shoppers spiral into chaos as Forever 21 officially shuts every last store across the US
Brace yourselves, fashion girlies, Forever 21 is officially no more. The iconic fast fashion brand has quietly closed the last of its 354 stores across the U.S., following its second Chapter 11 bankruptcy. The announcement dropped months ago, but the emotional aftermath? That just hit the internet like a heartbreak song on shuffle. The era of $3 earrings and impulse hauls is over What was once a casual trip to the mall has turned into full-blown mourning online. One user on X went viral after admitting they had casually planned to grab earrings from Forever 21, only to remember the store is gone. Chaos ensued in the comments as Gen Z and millennials alike shared the same tragic epiphany. Needed a pair of earrings bc i forgot mine so I thought 'oh i'll just run in Forever 21 right quick' then I remembered and i just- How the fuck do you let forever 21 close dude. Dude no. no no no no no. I will save Forever 21. who is with me. Social media realises the end is real and reacts accordingly People are having their "wait, it is REALLY gone??" moment now, flooding timelines with disbelief, nostalgia, and confusion. "Forever 21 closed??? This is how I find out… devastating," wrote one heartbroken fan. Another said they used to leave with "15 pieces under $150" and now feel betrayed by capitalism. Back in May, the brand attempted to soothe the masses with a cryptic Instagram post that promised they are 'evolving' and 'refreshing.' But with stores shuttered nationwide, fans are not buying it, literally. Even with rebrand rumours floating around, many just want their chaotic mall staple back. This actually so sick, bc forever 21 was the place you would go when you need a quick shirt or something last minute 💔💔 Ugh forever 21 was the perfect last minute shop for an event or outing or anything!!! 😭 h&m used to be a good backup too but they not even as good as they used to be ugh wtf even is this decline we're forced to endure!! 😭 Forever 21 tries to reassure but it feels too late The farewell feels personal. It is more than fashion, it is about memories, teenhood, and that iconic yellow bag with bold black letters. And now, it is all dust. Whether Forever 21 returns in some reincarnated digital form or not, one thing is clear: the emotional damage is done. The TikTok generation is in shambles, and no amount of rebranding can replace that first college crop top or impulsive jewellery binge. Rest in pastels, Forever 21. You had us all in your fast fashion chokehold.
Miami Herald
29-06-2025
- Business
- Miami Herald
Fashion giant expands to new US markets
The past few years have been brutal for retail. And with the potential for tariff-related upheaval, things aren't looking too rosy in the near term. Although retail was sluggish before the Covid pandemic, the events of 2020 made things exponentially worse. Don't miss the move: Subscribe to TheStreet's free daily newsletter Forcing consumers to stay out of stores and limit themselves to online shopping drove a lot of retailers into the ground. And even those that survived the pandemic didn't necessarily have it easy. Related: Fashion giant files for Chapter 7 bankruptcy to liquidate Once society opened back up, retailers were hit with inventory challenges and labor shortages. And by the time those issues resolved themselves, inflation was already surging. That put a strain on retailers with tight margins, forcing many to close their doors. Not only has inflation driven costs up for retailers, but it's also taken away a lot of their business. Many consumers have had to change the way they spend their money to cope with inflation. A lot of people have cut back on nonessential and even essential purchases, driving a wave of bankruptcies across the retail sector. Related: Walmart makes bold move to help inflation-battered consumers In April of 2024, popular mall retailer Express filed for bankruptcy. The company cited a decline in sales and changing consumer preferences as big factors in that decision. And earlier this year, Forever 21 filed for bankruptcy for the second time. The company said it was struggling to attract customers given increased competition from budget online retailers like Temu and Shein. Things got so dire for Forever 21 that the company wound up liquidating. At a time when so many retailers are filing for bankruptcy and closing their doors, Primark is thriving. And now, it's making plans to expand its U.S. footprint. In late July, Primark is scheduled to open its first store in Memphis, Tennessee. Once that location opens, it will mark the company's 31st store. Related: Costco brings back huge perk members have missed Following that, Primark has plans to open a second store in Franklin, Tennessee. The Memphis location will span over 35,000 feet and feature the inventory Primark is known for, including budget-friendly apparel, beauty products, and housewares. "Bringing Primark to Tennessee is a proud and exciting milestone for us," said Primark U.S. President Kevin Tulip. "As we grow our footprint across the Southern U.S., we're thrilled to open our doors at Wolfchase Galleria and introduce Memphis shoppers to the incredible value and style that has made Primark a go-to destination for families and fashion lovers around the world." Although Primark has a limited footprint in the U.S., it boasts a total of 450 stores, mostly in Europe. But the fact that Primark is expanding is a clear indication that there's still a strong appetite for budget-friendly retail here in the U.S. More retail: Walmart CEO sounds alarm on a big problem for customersTarget makes a change that might scare Walmart, CostcoTop investor takes firm stance on troubled retail brandWalmart and Costco making major change affecting all customers Even during the pandemic, when people were staying at home most of the time, consumers were still spending money on clothing. With the right strategy, Primark could position itself to thrive at a time when so many retailers are floundering. If the company can continue to offer appealing, trendy products at prices consumers like, it might easily take business away from more established retailers and carve out a name for itself as a leader in affordable fashion. Related: Key retailer tries new store concept after Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
25-06-2025
- Business
- Miami Herald
Struggling mall retailer shares sad Chapter 11 bankruptcy news
Once a company files Chapter 11 bankruptcy, it can sometimes pretend nothing has happened. A lot of retailers operating under a Chapter 11 bankruptcy filing don't mention it in their stores or on the homepage of their website. They continue acting as if nothing has happened because that's what's best for business. Related: Coca-Cola has genius plan to win back lost customers In many cases, however, that's a bit like knowing you have a serious illness and not mentioning it to family and friends. Not talking about it does not make the situation go away, nor does it help you heal. With a bankruptcy, however, the fate of a company hangs in the balance. It might be working on new funding or trying to sell the company to creditors who may continue to run it. Forever 21 has been operating like that since it filed for Chapter 11 bankruptcy protection for the second time in March. The company has acted like it's business as usual, and its website only mentions the filing on an interior page. Don't miss the move: Subscribe to TheStreet's free daily newsletter The company even used its Facebook page to tease a future it likely does not have. It posted under the heading, "Hey Forever 21 Fam." "We know there's been some buzz, and we want to clear things up. Forever 21 isn't going anywhere, and we are still committed to bringing you the styles you love. Right now, we're evolving, refreshing, and building what's next," it shared. That sounds nice, but it does not reflect the company's reality. While Forever 21 has been trying to convince its customers that things are fine, the company did file for Chapter 11 bankruptcy on March 16. It shared some information on that filing on a page on its website. "In connection with the filing, we are beginning the process of closing a number of stores across the U.S. Importantly, however, our stores will remain open for the time being and we will continue to fulfill customer orders placed online. We also will continue to honor customer gift cards and store credit through and including April 15, 2025," it posted. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The company also made some changes that are typical for a company being liquidated. "All sales both in U.S. stores and the U.S. website are now final. Accordingly, we will no longer be accepting returns or exchanges. Additionally, at this point, we are no longer offering new gift cards or credit cards," it added. The chain has tried to be optimistic, as a buyer could emerge, or some new form of funding might help keep the company alive. It shared information on that as well. "As part of our filing, we have requested to engage in a court-supervised marketing process for a going concern transaction or the sale of some or all of our assets. Decisions about which stores will ultimately close are ongoing, pending further discussions with landlords and potential buyers," it shared. Forever 21 has been in a sort of bankruptcy limbo because its unsecured creditors objected to an arrangement that would have led to them receiving almost nothing from the chain's liquidation. That changed on June 24, when judge Mary Walrath approved a new deal that would see those creditors receive more of the proceeds from a liquidation. "The repayment plan includes a settlement with lenders and former Forever 21 parent Sparc Group that's designed to boost recoveries for unsecured creditors that stood to get pennies on the dollar. Sparc agreed to fully waive a $323 million claim that would have diluted any amounts received by unsecured creditors. They will get 70% of any net proceeds that F21 OpCo obtains during liquidation," Business of Fashion reported. That ruling clears the path for Forever 21 to move toward fully liquidating its assets and closing all of its stores. Related: Popular children's retailer files for Chapter 11 bankruptcy A buyer or savior could still emerge, but under the current process, the company will continue to be liquidated unless that happens. Authentic Brands Group (ABG) owns the Forever 21 brand, and its stores have been operating under a license. The bankruptcy process is only impacting U.S. stores, and there's nothing preventing ABG from finding a new licensee after the current operator finishes its liquidation process. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
24-06-2025
- Business
- Yahoo
Forever 21's US Operator Wins Court Approval to Liquidate
(Bloomberg) -- The former operator of Forever 21's US stores won court approval on a plan to partially repay vendors and other creditors that stand to incur big losses in the retailer's bankruptcy. Bezos Wedding Draws Protests, Soul-Searching Over Tourism in Venice US State Budget Wounds Intensify From Trump, DOGE Policy Shifts US Renters Face Storm of Rising Costs Commuters Are Caught in Johannesburg's Taxi Feuds as Transit Lags The repayment plan includes a settlement with lenders and former Forever 21 parent Sparc Group that's designed to boost recoveries for unsecured creditors that stood to get pennies on the dollar. Sparc agreed to fully waive a $323 million claim that would have diluted any amounts received by unsecured creditors. They will get 70% of any net proceeds that F21 OpCo obtains during liquidation. The deal approved Tuesday by Judge Mary Walrath is part of the firm's liquidation. An earlier version without the settlement called for unsecured creditors receiving less than 1 cent on the dollar for debt they're owed. F21 OpCo filed for Chapter 11 protection in March, two months after Sparc — which operated Forever 21 along with Aeropostale and other fashion brands — announced it had merged with JCPenney to form a new company. A committee representing unsecured creditors in bankruptcy said it investigated the Sparc transaction. In a June 11 court filing, the group said it opted for the settlement approved Tuesday because it didn't uncover potential legal claims that would 'materially improve recoveries for general unsecured creditors.' Some vendors to F21 OpCo told Bloomberg News that the firm had asked for discounts on orders and took delivery of shipments shortly before filing for bankruptcy, without disclosing plans to reorganize. Founded in 1984, Forever 21 offered young women low-cost, trendy clothing but has suffered from rising costs and competition from online retailers like Temu and Shein. The Forever 21 brand is owned by brand licenser Authentic Brands Group and is not part of the Chapter 11 case. The case is F21 OpCo LLC, number 25-10469, in the US Bankruptcy Court for the District of Delaware. Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P.
Bloomberg
24-06-2025
- Business
- Bloomberg
Forever 21's US Operator Wins Court Approval to Liquidate
The former operator of Forever 21 's US stores won court approval on a plan to partially repay vendors and other creditors that stand to incur big losses in the retailer's bankruptcy. The repayment plan includes a settlement with lenders and former Forever 21 parent Sparc Group that's designed to boost recoveries for unsecured creditors that stood to get pennies on the dollar. Sparc agreed to fully waive a $323 million claim that would have diluted any amounts received by unsecured creditors. They will get 70% of any net proceeds that F21 OpCo obtains during liquidation.
