The Los Angeles based fashion brand; Forever 21 has filed for bankruptcy protection in the United States. Having more than 800 stores across the globe, Forever 21 is a renowned growing fashion brand. Forever21 bankruptcy filing is the huge step back for the people. It has planned on shutting down as many as 350 of its stores emphasizing mainly on the ones located in the United States. Also from some parts of Asia and Europe. Due to rising online retail business of the competitive brands, the brand was loosing popularity and hence is planning to shut down nearly 180 stores. These are the most unprofitable stores of Forever21 and are to be shut down if no further deals will reach.
“We have requested approval to close up to 178 stores across the United states. The decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords,”
-a statement shared by the company.
Whereas, this Forever 21 bankruptcy filing will have no impact in Indian markets because the business here is run as a franchise. Aditya Birla Fashion and Retail Ltd operates. Aditya Birla Fashion and Retail Ltb. has 23 stores of Forever 21 in India.
On this compony’s spokes person said; “Forever 21’s India business is run as a franchise operation by Aditya Birla Fashion and Retail Limited. The business operations of the brand in India will not be impacted in any way by its restructuring underway in the US.”
STORES IN INDIA WILL NOT SHUT DOWN
So the stores will not be shutting down in India. Will be operating normally despite Forever 21 bankruptcy protection filing in the United States. However, Aditya Birla Fashion and Retail are planning on downsizing the stores of the brand, cutting costs. Looking forward to opening new but smaller brand stores of the company.