Core Viewpoint - Forever 21, once a giant in the fast fashion industry, is facing bankruptcy due to the impact of cross-border e-commerce brands and is seeking buyers for its remaining stores, with plans to liquidate approximately 350 locations if no suitable buyers are found [1]. Company Background - Founded in 1984 by Korean-American couple Do Won Chang and Jin Sook Chang in Los Angeles, Forever 21 started as a small 25-square-meter store named Fashion 21 [3][4]. - The brand quickly gained popularity for its affordable and trendy clothing, expanding to over 800 stores globally and achieving annual revenues exceeding $4 billion at its peak [1][2][8]. Expansion and Market Position - In 2000, Forever 21 began a significant expansion into "superstores," with locations exceeding 500 square meters, and continued to open stores in prime locations even during the 2008 financial crisis [5][6]. - The brand became one of the top five clothing retailers in the U.S., diversifying its product range to include men's clothing, accessories, and plus-size apparel [6][8]. Challenges in the Chinese Market - Forever 21 struggled to establish a foothold in the Chinese market, experiencing multiple entries and exits due to cultural misalignment and competition from established brands like H&M and ZARA [10][11]. - The brand's products were criticized for their quality and design, which did not resonate with Asian consumers, leading to its exit from the market in 2019 [11][12]. Financial Decline and Bankruptcy - After a period of rapid expansion, Forever 21's financial troubles began to surface around 2015, culminating in a 137% decline in profitability due to the costs associated with large new stores [16]. - The company filed for bankruptcy protection in September 2019, later being acquired by a consortium for $81 million, which included plans for restructuring and revitalization [16][17]. Recent Developments - In 2023, SHEIN acquired a one-third stake in SPARC Group, a joint venture with Authentic Brands Group (ABG), which manages Forever 21, indicating a strategic partnership aimed at leveraging Forever 21's retail network for SHEIN's expansion [17]. - Despite these efforts, Forever 21 is once again facing bankruptcy, highlighting the ongoing challenges in the fast fashion sector and the need for a viable buyer to continue its operations [17].
成立41年的潮牌要破产了
虎嗅APP·2025-03-05 13:13