We recently reported the news about Forever 21 being one step closer to filing for bankruptcy, and on Sunday night it became official. Forever 21 filed for Chapter 11 bankruptcy protection.
This company which was founded in 1984 grew tremendously during the era of “fast fashion.” With items valued at $10 to affordable dresses valued at $25, teenagers used to line up at the store entrance to be among the first to shop as soon as the store opened. Now, some Forever 21 stores have been forced to close sections even floors due to the lack of foot traffic and sales.
The Chapter 11 filing will allow Forever 21 to keep operating while it works out a strategy to pay its creditors and the turn the business around.