Back in 2018, many popular fashion retailer such as GAP and American Eagle Outfitter had exited the local market, which was said to be as a result of the rise in fast fashion labels like Forever 21 and H&M.
However, just yesterday (29 August 2019), Bloomberg has reported that Forever 21 could possibly be declaring bankrupt soon.
Noooooooo!
Backlash Against Fast Fashion
Fast fashion is a term used to describe inexpensive clothing that is mass-produced by fashion retailer according to the current trend.
As people would always say: Fast come, fast go.
That’s pretty much the case for fast fashion as well.
It was rapidly produced and sold to the customers, and it goes to the garbage bin pretty quickly too.
As people are focusing more on being environmentally-friendly, they are also being educated on how damaging fast fashion can be to Mother Earth.
Many of them has since turned to sustainable fashion instead – could that be the reason for the downfall of Forever 21?
The irony.
Signs Of Struggle
As someone who used to be a fan of Forever 21, I definitely did notice a significant drop in their local presence.
With only one store left at 313@Somerset, it is kind of obvious that the brand isn’t exactly performing well.
But can I just say, Forever 21 is pretty overpriced now considering how bad their clothes quality can be at times? Especially if you are looking to target the younger crowd, they can be pretty price-sensitive.
Not just in the local market, the fast-fashion retailer is reported to have closed the doors of multiple outlets internationally.
The company has also been looking for additional funding and renegotiating its debts in hope to turn the business around, which clearly isn’t going on smoothly.
Debtor-in-Possession Financing
Forever 21 is currently looking to file for “Chapter 11” to gain some time to have a fresh start and restructure their debt.
Chapter 11 is defined as a form of bankruptcy that involves a reorganization of debtor’s business affair, debts, and assets. This allows a business to continue its operation while working through their financial obligations.
The One & Only Store In Singapore
As to whether the store in Singapore will be affected, it is still an unknown.
However, looking at how they have gone from four outlets to only one outlet left in Singapore, things are definitely not looking good.
With more than 800 stores across the globe, I can only imagine the number of staff being affected by this news.
For now, we can only hope for the best for the brand and its employees.
Forever 21 may not be that forever after all huh.
Here’s a simplified summary of the South Korea martial law that even a 5-year-old would understand:
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