Forever 21 eyes liquidation as the former fast-fashion icon flounders
Forever 21 is reportedly in talks with liquidators as business unravels for the former mall staple. Once a go-to for 2000s teen fashion, the brand has struggled to stay profitable in recent years. In 2019, Forever 21 filed for Chapter 11 bankruptcy and secured $350 million in financing. The company was later bought by a consortium that included Authentic Brands Group, Simon Property Group, and Brookfield Property Partners.
Even with new ownership, Forever 21 has continued to flounder. Last summer, it reportedly asked some landlords to cut rent by up to 50% to ease the strain on its finances. Talks with liquidators could be a sign that the retailer is struggling to find a buyer and could potentially face another bankruptcy. On top of its shrinking store footprint, Forever 21 is also up against stiff competition from ultracheap e-commerce giants like Shein and Temu.
It’s not the only one: Etsy shares tumbled more than 8% after the online marketplace missed Wall Street’s fourth-quarter revenue expectations, as more shoppers chose cheaper goods over handmade items.
Even with new ownership, Forever 21 has continued to flounder. Last summer, it reportedly asked some landlords to cut rent by up to 50% to ease the strain on its finances. Talks with liquidators could be a sign that the retailer is struggling to find a buyer and could potentially face another bankruptcy. On top of its shrinking store footprint, Forever 21 is also up against stiff competition from ultracheap e-commerce giants like Shein and Temu.
It’s not the only one: Etsy shares tumbled more than 8% after the online marketplace missed Wall Street’s fourth-quarter revenue expectations, as more shoppers chose cheaper goods over handmade items.
