Perpetually 21’s chapter crystalizes the top of a retail age — one which was characterised by an ever-expanding brick-and-mortar presence and ever-lower costs.
The fast-fashion firm limped into chapter 11 late Sunday with too many shops that had been too large, not sufficient of an e-commerce enterprise and a world growth that stretched its quick-turn provide chain to the restrict.
Reasonably than embracing at the moment’s important themes in retail — the place sustainability, a smaller footprint, an emphasis on expertise and robust brick-and-click connections rule — the L.A.-based firm jumped at actual property alternatives in a quickly shifting market, doubling down on old-world retail simply as the buyer took a tough flip.
Now the retailer, which at its peak employed 43,000 individuals and logged $4.1 billion in annual gross sales and has lengthy been recognized for its authorized battles, plans to trim down and develop its internet enterprise — hoping to maintain a household dream alive and including a second chapter to a 35-year-old firm that, for a time at the very least, efficiently marketed itself as a form of fountain of youth.
“Forever 21 is a story about family and the ‘American Dream,’” mentioned Jonathan Goulding, the retailer’s chief restructuring officer, in courtroom filings. “In an age when retail, as
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