Forever 21 fast fashion brand is on the brink of bankruptcy

Forever 21, the fast fashion chain that falls in love with teenagers and young people around the world, is preparing for a "potential
bankruptcy"in the middle of a crisis in your accounts and without more tools for
renegotiate your debts.

This was reported by the Bloomberg agency this week. "The company is in talks to obtain additional financing and has worked with a team of advisors to restructure its debts, but negotiations with potential creditors have become bogged down," the article said.

The company's goal now is to secure a "debtor-in-position" loan so that the company can enter
Chapter 11 (the American figure which equates to a petition in bankruptcy).

This order of
bankruptcy This would help the company get rid of unprofitable premises and recapitalize its business. According to Bloomberg, this would imply a problem in the
immovable commercial since
Forever 21 It is one of the world's most important tenants of shopping centers. This is one of the few remaining after a "wave" of bankruptcies in the retail sector.

This application for bankruptcy would help the company to get rid of unprofitable premises and recapitalize its business.

Forever 21 was born in 1984 in Los Angeles, California under the name "Fashion 21". According to information posted on the company's website, the brand has opened a new store every six months. Currently, the company has 600 representations worldwide and 35,000 employees.

Its creator, the South Korean immigrant Do Won Chang, washed the dishes, cleaned the offices and worked for the gas station after moving to the United States with his wife, Jin Sook Chang, in 1981.

When they managed to save $ 11,000, the couple decided to buy a clothing store for sale near the apartment in a room where they lived with Do Won's parents. . They devoted themselves to "fast fashion" (
fast fashion, in English), which implies a very fast production, at minimal prices and with poor quality materials.