Posted on 03/05/2025 5:33:12 AM PST by Red Badger
(The Center Square)—Iconic retail chain Forever 21 announced it is closing its Los Angeles corporate headquarters, adding another corporate exit from Southern California.
Bloomberg reports the company is expected to close hundreds of stores and file for bankruptcy.
Forever 21, a pioneer in fast fashion with its namesake stores providing affordable fashion items and accessories, enjoyed explosive growth in the first decades of its existence before facing challenges due to reports on toxic metal in its jewelry and labor rights issues.
Despite revenue in the billions of dollars in annual revenue during the 2010s, the founding Chang family sold Forever 21 to Authentic Brands and other buyers for just $81 million in 2020.
Analysts point to fierce competition from Chinese fast fashion giants like Shein and Temu as a key factor.
“Shein and Temu … mostly rely on Chinese suppliers, and they’re able to offer low prices in part because of the method they use to get their products from those suppliers to shoppers. By shipping individual orders directly to customers, they avoid US import duties, which are waived if a shipment’s value is less than US$800,” wrote global investment firm Harding Loevner. “US lawmakers have called this an unfair advantage over American retailers, many of which do pay import duties to bring in inventory made overseas.”
With Forever 21 now facing bankruptcy, the rise of these online-only competitors highlights a seismic shift in the retail and commercial real estate landscape, which is already struggling with high vacancy rates.
Well, everyone grows up sometime.
Is “5-7-9 Shop” still in Business?..........
This will surely be seen in more variations as time goes forward. A couple of malls near us are losing occupancy due to similar "economic" themes being acted out.
Democrats and "never Trump" RINOs will be blaming our president in 3... 2... 1....
Now they have to rename it 21
It’s really a shame that mall culture is dying.
Being at home on a tablet or computer, ordering clothes and then going back to gaming isn’t nearly as much fun as going to the mall with friends to girl watch.
Go back and look at old videos from the 80s and 90s, those were different times.
ATTENTION:President Trump!
Wonder if you could have an upscale mall that is membership only, so the riff raff can be kept out?
Like a Sam’s, Costco or BJ’s?..............
Never heard of it. Iconic.
That’s because you’re not a female teenager.........................I think...............
Bidenomics at work.
You would be right.
Forever 21? Sounds like a good name for a fake ID store.
“No corrective lenses tonight Mr. Papageorgio ?” “I do not require them”.
Yes, but a whole mall with many stores. Have control not just at the entrance but the parking lot as well. Protection and access control for the entire facility. My guess is the mall would be more mid-to-upscale but that would be an attractant to shoppers.
And you couldn’t have one low life with a membership bring all his friends. Nope.
Back in the 70’s there were ‘Buyer’s Clubs’ that you paid an annual fee to use. Similar to what you describe, but eventually went out of business in favor of the modern day Big Box stores like Costco, et al.....................
We will see a lot of businesses going under this year, both small and large. An average mom & pop business is played out at this point, with many typically having 500K in SBA Covid loans and a plethora of high-interest Merchant Capital Advance (MCA) loans.
they could charge a cover fee, redeemable at any store except the food court/cinnamon/pretzels.
“Forever” doesn’t mean what it used to.
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