The suspects are said to have been involved in the armed robberies of four jewelry stores across three Midwest states.
Forever 21 Files for Bankruptcy, May Close Up to 350 Stores
The fast-fashion retailer is expected to shutter most of its stores in Asia and Europe while maintaining a downsized U.S. presence.
Los Angeles—Fast-fashion retailer Forever 21 filed for Chapter 11 bankruptcy protection Sunday, and plans to close stores in the United States and internationally.
The company will shutter up to 350 of its 800 locations worldwide, including 178 in the United States, and will cease operations in 40 countries, including Canada and Japan, as per a New York Times report.
Its beauty brand, Riley Rose, will reportedly close its 15 locations in the U.S., or be incorporated into existing Forever 21 stores.
“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,” Linda Chang, the fast-fashion chain’s executive vice president and the founders’ daughter, said in a press release.
In a letter to customers, the company said it does not plan to exit any major markets in the U.S.
Internationally, it said it will close most of its locations in Asia and Europe while continuing operations in Mexico and Latin America.
The letter assured customers the company is not going out of business, noting its bankruptcy filing “is a deliberate and decisive step to put us on a successful track for the future.”
Forever 21 has secured $275 million in financing from its existing lenders with JPMorgan Chase and $75 million in new capital from TPG Sixth Street Partners to facilitate its restructuring efforts.
The company’s stores are open for business, continuing to accept gift cards and operating under the same policies.
Founded in 1984, Forever 21 began as a small store in Los Angeles, operated by South Korean immigrants Do Won Chang and his wife, Jin Sook.
“The Changs, the founders and owners of Forever 21, serve as a rare and exemplary model of the American Dream,” Chief Restructuring Officer Jonathan Goulding said in a court statement.
“From humble beginnings, the Changs created a worldwide enterprise that, at its peak, employed 43,000 people and had $4.1 billion in annual sales.”
Its first international store opened in Canada in 2001. By 2015, the company had 251 international stores, expanding to 40 countries across five continents.
“Unfortunately, this rapid international expansion challenged Forever 21’s single supply chain and the styles failed to resonate over time across other continents despite its initial success,” Goulding said.
The company leases most of its stores and offices, a total of 12.2 million total square feet for its retail stores, according to court documents, adding up to $450 million in rent.
More
Goulding noted the retailer’s super-sized stores led to “complicated assortment strategies and triggered inventory management challenges.”
While traditional retailers have been losing out to online shopping, Forever 21 has a strong ecommerce presence, with online sales accounting for 16 percent of all sales, as per court documents.
However, its fast-fashion approach, with basic T-shirts and leggings under $5, may not resonate with the growing number of consumers interested in more eco-friendly fashion choices.
The rise in interest in sustainable clothing has led to the success of companies like ThredUp, an e-tailer for secondhand clothes, and has prompted brands like Levi’s and H&M to introduce eco-conscious collections.
Forever 21’s restructuring plans includes closing underperforming locations, a “back-to-basics” merchandising plan, and strengthening its vendor agreements.
The company has not encountered any cash-on-delivery demands or shipping freezes, said Goulding, noting that founder Chang has entered into more than 130 vendor support agreements with key suppliers.
The company’s Canadian subsidiary also filed for and was granted bankruptcy protection by the Ontario Superior Court of Justice (Commercial List) in Toronto.
The Latest
The new designs blend Creative Director Reed Krakoff’s aesthetic with the brand’s Balinese roots.
The Dallas-based jeweler will showcase timepieces from Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Parmigiani Fleurier, and more.
From protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
The artwork, titled “Pristine,” was raffled off at the Canadian Jewellers Association’s recent summit.
The new store features a custom design studio and a bridal salon.
Designer Rosanne Karmes has created a collection to coincide with the release of the movie musical, which is expected to be a blockbuster.
This fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
The retailer said it will file the necessary paperwork to regain compliance as soon as it is able.
Whether you’re calming the jittery gentleman in seat 13B or selling a diamond ring to a hesitant customer, an empathetic approach is best.
The gala includes a red carpet, music from DJ Renata, an awards program, and “mystery boxes.”
The trade show, in its third year, will take place in late September at the Donald E. Stephens Convention Center in Rosemont, Illinois.
The jeweler shared her change of heart on lab-grown diamonds and why she keeps them separate from natural diamonds in her business ventures.
The 2025 Gem Awards are scheduled to take place March 14 at Cipriani 42nd Street in New York City.
“Love and Celebration” is the jeweler’s first in-house collection featuring engagement rings, wedding bands, and celebration rings.
A more positive view of the labor market contributed to the strongest monthly gain since March 2021.
The funds will be distributed to schools in the U.S., Canada, and the U.K.
Jennifer Mulvihill, the first woman to lead JSA in the organization’s 141-year history, takes over for the retiring John Kennedy.
This year’s festivities include more than 100 experiences, such as designer showcases, panel discussions, and even a treasure hunt.
The GMT-Master “Pepsi” that belonged to astronaut Edgar Mitchell is one of two Apollo-flown Rolex watches ever sold at auction.
The ads star brand ambassadors Chloe and Halle Bailey and Pamela Anderson.
The company combined two sights in Q3 due to the slowdown in demand, and said it is moving up the dates for sights 9 and 10 in Q4.
The jewelry designer discussed how she got into the jewelry industry, what she keeps in her favorite locket, and the future of her brand.
Participants can buy five votes for $5 to decide which jeweler will dress up as an ‘80s rockstar for Halloween.
These 15 pieces of jewelry hand-picked ahead of Halloween appeal to the costume- and candy-loving child in all of us.
Starboard Luxury is bringing the Italian brand aboard The Ritz-Carlton Yacht Collection’s newest yacht.
The pendant, circa the late 1700s, likely was commissioned to remember a loved one who died young.