Washington: One-time hot destination for teen shoppers and American fashion retailer, Forever 21, had fallen victim to its own rapid expansion and changing consumer tastes as they filed for bankruptcy, the media reported on Monday.
According to reports, the company had also made plans to exit most international locations in Asia and Europe. The store closures could number 12,000 by the end of 2019.
Forever 21 was founded in the year 1984 and since then it has been selling trendy clothes and accessories. It also competes with other fashion chains such as Zara and H&M, and rode a wave of popularity among young customers since the mid 1990's.
The company said that it has obtained $275 million in financing from existing lenders and $75 million in new capital to assist with a global restructuring.
"This was an important and necessary step to secure the future of our company, which will enable us to reorganize our business and reposition Forever 21," the firm's Executive Vice President Linda Chang said to a daily. According to reports, while the company would cease most operations in Asia and Europe, it would continue its operations in Mexico and Latin America.
Last week, the retailer said to a daily that the company would pull out of Japan by October.