Forever 21 Might Be Filing For Bankruptcy

Is this the beginning of the end for fast fashion?

Forever 21 could be filing for bankruptcy very soon.

According to a new report by Bloomberg, the retail giant has been making moves to prepare for such a filing, but nothing official has been announced as of yet.

Should the company file for bankruptcy, it wouldn't necessarily mean that the brand would be gone forevermore, but it would help the company shed unprofitable stores and recapitalize the business.

In essence, the store wouldn't disappear everywhere, but a great majority of its physical footprint would be gone.

Per Bloomberg, the company is the sixth-largest tenant of Simon Property Group Inc., one of the country's biggest mall owners, and F21 remains as one of the largest mall tenants overall. 

 The company had previously tried to avoid filing for bankruptcy by seeking debt restructuring and new financing sources, but "negotiations with possible lenders have so far been stalled," per Bloomberg, so turning focus to bankruptcy is the natural next step.

Earlier this month, another retail giant – the world-famous Barneys – also filed for bankruptcy, seemingly demonstrating that the industry is in quite a state of flux.

Looks like the Netflix generation is actually listening to what's going on around them as – according to Fast Company – the resale apparel market is booming. 

The 2019 thredUp Resale Report analysed the drivers pushing this revitalised sector, showing that 56 million women bought secondhand products in 2018, an increase of 12 million new secondhand shoppers from the year prior.

ThredUp reports that increased growth can be credited both to millennials and Generation Z, who adopt secondhand items 2.5 times faster than the average consumer.

Main image by @forever21

READ MORE: The Rise Of The Sustainable Influencer

READ MORE: What Exactly Is A Circular Economy And How Can It Save The Planet?

You May Also Like