Forever 21, formally known as “Fashion 21,” has officially filed for Chapter 11 bankruptcy protection.
The fast-fashion retailer was founded in Los Angeles, California by Do Won Chang and his wife Jin Sook Chang, in April of 1984. Since then, the company has reached high levels of popularity and has multiplied around the U.S.
For some, Forever 21 was a workplace and to others, a reliable store to shop for inexpensive clothing. However, as time progressed, so did fashion and trends.
The need for fast-fashion went down and sales slowly plummeted. Shoppers are now searching for sustainability in products.
How does this drastic shift in sales impact employees and Forever 21 shoppers?
“I was nervous that our store would close once, I heard Charlotte Russe across the mall closed, but I am confident in our store remaining open,” said Jessica Estremera manager and specialist of Forever 21 Brea Mall. “We have been getting a lot of new shipments in and making changes.”
Estremera has been with the company for three years now and confirms that there has been no specific list on which stores will be shut down.
With the enormous amount of deals Forever 21 is giving, many shoppers have been attracted by the sales.
“I have been going to Forever 21 since junior high, the inexpensive and cute clothing has helped made shopping super easy,” said Katelyn Lounsbury a Forever 21 shopper.
The fast-fashion company has been thriving for many years, providing both men and women’s clothing.
Prices at all locations and online have dropped tremendously following the Chapter 11 filing.
Additionally, a lawsuit was filed by Ariana Grande against Forever 21 early September. The pop star alleges that the retail company stole images from her “7 Rings” music video and posted the pictures on their website and social media platforms. In addition, Grande also claims Forever 21 used a look-alike model that resembles her and is seen posing as the star. These images were also on their website and social media.
The musician is also suing Riley Rose, a beauty company owned by Forever 21, accusing them of stealing images from the video and displaying them as ads online.
From a decline in sales, to a huge lawsuit, Forever 21 has been struggling to keep it’s doors open. The retail company is set to close roughly 200 stores around the U.S, Canada, and Europe.