How Forever 21 went from a fast-fashion powerhouse to bankruptcy and a troublesome future
Getty
- Forever 21, once one of the world's leading clothing retailers, has fallen on hard times. It filed for Chapter 11 bankruptcy protection on Sunday.
- The company was founded in 1984 and pulled in $700,000 in sales in its first year. Today there are 794 Forever 21 stores worldwide.
- Founders Jin Sook and Do Won "Don" Chang had a combined net worth of $5.9 billion at the company's peak in 2015, Forbes reported. They were no longer billionaires as of July, according to Forbes' estimates.
- On Sunday, Forever 21 announced its bankruptcy filing in a letter to shoppers, writing: "Once we complete a reorganization, Forever 21 will be a stronger, more viable company that is better positioned to prosper for years to come. We look forward to continuing to provide you with the great service and curated assortment of merchandise that you expect from us."
- Here is the complete story of Forever 21, from its quick rise to become a top teen retailer to its slowdown and uncertain future.
- Visit Business Insider's homepage for more stories.
Once a hot spot for teen clothing, Forever 21 has filed for Chapter 11 bankruptcy protection.
But before its struggles, Forever 21 seemed unstoppable.
The company was founded by husband-and-wife duo Jin Sook and Do Won "Don" Chang after they emigrated from South Korea to Los Angeles in 1981. The pair opened their first store, then called Fashion 21, in 1984 and pulled in $700,000 worth of sales in the first year.
The retailer thrived through the early 2000s, eventually peaking in 2015 when its founders were worth a record high of $5.9 billion combined, Forbes reported. Today, Forbes estimates that the cofounders are no longer billionaires.
On Sunday, Forever 21 announced its bankruptcy filing in a letter to shoppers, writing: "Once we complete a reorganization, Forever 21 will be a stronger, more viable company that is better positioned to prosper for years to come. We look forward to continuing to provide you with the great service and curated assortment of merchandise that you expect from us."
A representative for the company told Business Insider in a statement that the company planned to close most of its locations in Asia and Europe but to continue operations in the US, Mexico, and Latin America. Forever 21 will close up to 178 stores in the US and as many as 350 globally.
Here's the story of the company, from its quick rise to global prominence to its slow downfall into uncertainty.
The story of Forever 21 began with a dream. Husband and wife Jin Sook and Do Won "Don" Chang emigrated from South Korea to America with ambitions to start a business.
Forever 21
Source: Business Insider
After working as a janitor and coffee server for three years, Don had a realization. "I noticed the people who drove the nicest cars were all in the garment business," Don told The Los Angeles Times in a 2010 interview.
Volkswagen
Source:Business Insider, The Los Angeles Times
In 1984, the couple opened a 900-square-foot clothing store in Los Angeles called Fashion 21, the predecessor to Forever 21.
Nancy T./YelpSee the rest of the story at Business Insider
See Also:
- These 18 retailers have filed for bankruptcy or liquidation in 2019
- We compared leading hard seltzer brands White Claw and Truly — and the winner was clear
- Nordstrom is growing its fleet of stores that sell hardly anything at all — here's what they're like to visit
from Feedburner https://ift.tt/2n5Ovwz
via IFTTT
Comments
Post a Comment