Forever 21, a popular fashion retailer, filed for Chapter 11 Bankruptcy yesterday. In documents that were filed with the Bankruptcy Court, Forever 21 Inc said that its liabilities were between $1 billion and $10 billion of which were owed to over 100K creditors.

The bankruptcy will not only affect jobs but also real estate locations at malls where the stores are currently located.

The company, with 815 stores worldwide, will close 178 locations in the US and most of its stores in Asia and Europe.

When questioned about the filing the company’s executive vice president Linda Chang stated, “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”.

Forever 21 blames online competition and changes in fashion that have led to the recent decline in sales.

Forever 21 opened its first store in Highland Park, Los Angeles, in 1984. That store was originally named Fashion 21.k.

List of retail companies that have declared bankruptcy in 2019:

  1. Beauty Brands – Chapter 11 Bankruptcy on January 4th, 2019
  2. Innovative Mattress Solutions – Chapter 11 Bankruptcy on January 14th, 2019
  3. Shopko – Chapter 11 Bankruptcy on January 16, 2019
  4. Gymboree – Chapter 11 Bankruptcy January 17th, 2019
  5. FullBeauty Brands – Chapter 11 Bankruptcy February 4th, 2019 – exited Bankruptcy 24 hours later
  6. Charlotte Russe – Chapter 11 Bankruptcy February 4th, 2019
  7. Things Remembered – Chapter 11 Bankruptcy February 6th, 2019
  8. Payless ShoeSource – Chapter 11 Bankruptcy February 18th, 2019
  9. Diesel – Chapter 11 Bankruptcy March 5th, 2019
  10. Z Gallerie – Chapter 11 Bankruptcy March 11th, 2019
  11. Roberto Cavalli – Chapter 7 Bankruptcy April 4th, 2019
  12. Kona Grill – Chapter 11 Bankruptcy April 30th, 2019
  13. Perkins & Marie Callender’s – Chapter 11 Bankruptcy August 5th, 2019
  14. Barneys New York – Chapter 11 Bankruptcy August 6th, 2019
  15. A’gaci – Chapter 11 Bankruptcy August 7th, 2019
  16. Sugarfina – Chapter 11 Bankruptcy September 6th, 2019
  17. Fred’s – Chapter 11 Bankruptcy September 9th, 2019
  18. Forever 21 – Chapter 11 Bankruptcy September 29th, 2019


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