Fast fashion retailer Forever 21 announced in late September 2019 that it had filed for Chapter 11 bankruptcy.
With the American economic crisismostlybehind us, Forever 21 is at risk at being left behind.
That’s not to say Forever 21 was simply a victim of a better economy.
No, this is where Forever 21 went so wrong and the truth behind the company’s bankruptcy filing.
“There is less margin for error particularly as companies grow.
If a retailer misreadsthe trends, they end up with the wrong inventory positions at higher volumes.”
But all the while, the company ignored their biggest competition: online shopping.
Adding more locations to malls was certainly a risk and, unfortunately, one that did not pay off.
This doesn’t necessarily mean that malls will disappear, though.
“Cleanse out some of these retailers that lasted longer than they should have.
It’s going to be tough.
Anyone who thinks otherwise is too optimistic.
But it doesn’t mean this is a dead business.
While that may be good news for malls, it’s certainly not for Forever 21.
American shoppers want to shop with brands they can trust.
But Grande’s lawsuit was not at all the first time the retail giant had ruffled shoppers' feathers.
The brand later removed the t-shirt from its site and provided a statement, apologizing for causing offense.
Because the retailer “only sold select styles for a limited time.”
That changed when Forever 21 started rapidly expanding.
Soon its styles didn’t seem so one of a kind anymore.
No, the clothes all started to blend together and look the same.
“No longer the trendsetter, Forever 21 became the butt of the joke.”
And Widlitz isn’t the only one who has noticed this.
Consumers have taken tosocial mediato voice their frustrations with the brand’s clothing.
“Forever 21’s quality [is] trash,” one shoppertweeted.
Another consumernotedthe brand’s “[ill-fitting] clothing and poor quality.”
In the company’s bankruptcy filing, Forever 21 itself even acknowledged its declining quality, according toCNBC.
“But I think they can survive if they right-size the ship and keep their better stores.”
She continued, saying, “And the walls closed in, in terms of the competition.”
Forever 21, however, didn’t adapt to keep up with either.
That would likely mean scaling back their offerings.
They don’t want to go upstairs.
It’s too much of a department store.”
“The more traditional retailers haven’t really thought about this particular generation as an attractive target.
Forever 21 also has quite theonline presence which will come in handy for attracting the younger generation.
