hello guys how are you and we are back again with a new video My name is Aashiv Mathur and and you are watching Business Buzz ,today’s video is going to be very interesting as we all know that Forever 21 has declared Bankruptcy on sunday so today we will know three major reasons due to which they have declared bankruptcy keep watching this video till end and if you do not know who is forever 21 and what they do and what are their business model so we will discuss about this Forever 21 is a chain of retail stores like of fashion like ZARA and FBB A=and they have similar type of business model this company started in 1984 by 2 peoples which were immigrants from south korea and their name was do wang chang and Jim shook chang and the original name of Forever 21 was Fashion 21 which was started only with saving of 11000 dollar and till the end of the year it was know by Fast fashion because it has generated $700000 revenue in 1 year and in 3 decade both the partners was holding 6 billion $ net worth according to forbes so what happened what misconseptions what they did wrong because of that they filed bankruptcy on sunday today we will know 3 reasons. To know all about start ups join me as I always tell some gap comes in the market if any start up fulfill that gap then he even defeats a big giant company as you all know if any big company does a small mistake and any small start up covers that gap then slow slowly his market value grows people trust them plus it becomes a brand and even he defeat a giant company which is working from years what happens and what happen with them that they file bankruptcy and i will tell 3 major reasons in video so stay tuned and subscribe, like our channel with your one like I get motivated and we will bring more good content to you now our start up and amazon playlist is going on if you have any problem related to business or related to digital marketing no need to go to other channel you will get the best here if you want a free consultation then feel free to contact me being a digital marketer it is an honour if I can guide you so lets start first of all let me tell you that forever 21 is not closing they have filed banckruptcy because they can restructure their business model so the news is coming that they are closing 350 stores all over the world out of that 178 stores are being closed in US and ceasing operations in the 40 countries so their total stores are 549 in US and out of that they are closing 178 which is a large amount Let’s go to 3 reasons due to which they file bankruptcy and no news what they are doing next so 1 reason is online competition in their market like london based ASOS and amazon and their customers were shifting toward amazon to compete H&M and ZARA in 2000 they came up with hawking Trendy with affordable clothes in which all fashion was their but they were not comsistense due to online customes and amazon was growing and ASOS customers were converting their and they were not online their sales drop down from their and as per their fast fashion model they provide fashionable things in affordable price in very low margins and in textile industry always focus on trends they change weekly and greek portal has also said if a retailer does pay attention to trends then he ends up with wrong inventry and then his sales drop down as same problem was their in sales and 2 reasons is too many stores forever 21 was growing very fast due to that they were opening new stores and their avarave size was 38000 sq. ft and due to this their debts were increasing and currently the debt is 500 million $ but active in mexico and latin america 3 reason is cheap chik lo longer in fashion do wang chang was selling high quality good in low price and increase our sales but the margings were low and young shopkeeps were are proving the same and according to a report production of appareals and footwears accounts 8% of the green house gases