Forever 21 could join the list of companies that have filed for bankruptcy in recent months. Although it has not yet filed for Chapter 11 of the U.S. Bankruptcy Code, there is much speculation about the future of its stores. Here’s what we know.
Will Forever 21 close its stores?
If you’re a frequent customer of this store, it seems that there’s bad news, as although the company has not made an official announcement, local media in California and Washington state have reported that some locations have already closed.
But before you panic, it’s important to wait for the company to comment on the matter, as the executives are still fighting to avoid formally declaring bankruptcy.
Will Forever 21 declare bankruptcy?
Just five years ago, in 2020, the clothing retailer was on the verge of bankruptcy; however, thanks to a partnership with Simon Property Group, Brookfield Corporation, and Authentic Brands Group, the company was able to weather the crisis and continue its operations. Now, it is again considering bankruptcy due to its current financial troubles.
ALSO READ H&M launches a collection inspired by The White Lotus and this is what it looks like
According to reports from the Los Angeles-based company, the management is already working with a restructuring advisor, as their plan is to find another buyer who can help prevent bankruptcy.
Part of Forever 21’s crisis stems from the growing competition from Chinese online discount retailers such as Temu and Shein. As a result, in 2023, Forever 21 partnered with Shein; however, the collaboration has not been successful.
The Origin of Forever 21
In 1981, Jin Sook and Do Won “Don” Chang, South Korean immigrants with limited resources and no formal education, set out in search of their American dream. To survive, Jin Sook worked as a hairstylist while Don took on various jobs as a janitor, barista, and gas station attendant. During this time, Don noticed the success that entrepreneurs in the fashion sector were achieving, which inspired him to start his own business.
With a capital of just $11,000, they opened a 900-square-foot clothing store, initially called Fashion 21. Their strategy focused on taking advantage of wholesale liquidations, which allowed them to offer fashion at reduced prices. In its first year, Fashion 21 generated sales of $700,000.
Although Fashion 21 initially catered mainly to the Korean-American community in Los Angeles, the Changs quickly expanded their business, opening new stores every six months. With the growing popularity of the brand, they decided to rename it Forever 21 to emphasize that it was for anyone who wanted to look modern, fresh, and young at heart.
Forever 21’s success was built on a simple but effective strategy: offering trendy clothing at affordable prices, which made the brand a trendsetter and one of the pioneers of the fast fashion industry.
Forever 21’s Return and Refund Policy
Requesting a refund is possible. Simply follow these steps:
- Request your return: Contact [email protected] and provide your order number, full name, payment method, and a brief description of the reason for your request.
- Pay for shipping: If the return is authorized, the customer agrees to pay the return shipping cost, which will be deducted from the refund amount.
- Return the product: Preferably, use the same packaging the item was delivered in (all items must be in good condition and have their original tags).
The refund may take more than 14 business days due to the estimated time it takes for the package to arrive at the warehouse and for the request to be processed. The money will be refunded through the payment method you selected when placing the order.
If you want to exchange a product, here’s the process:
- Visit any Forever 21 physical store.
- Present the purchase receipt and the unused, unwashed item with its original tags or packaging.
- Exchange the item for another in a different color or size at no additional cost, or for another of equal or higher value (you’ll need to cover the price difference).
Remember that exchanges must be made within 30 days of your purchase. There are no exchanges on underwear, swimwear, accessories, or discounted or promotional items.
