Forever 21 founded by Do Won Chang and his
wife Jin Sook Chang is an American fast fashion retailer that’s headquartered in
Los Angeles California so it is known for its trendy offerings and low pricing
at the peak of its career in 2015 it made four point four billion dollars in
revenue which is equivalent to 440 crores INR but the company has
now filed for bankruptcy so what exactly happened so as of 2019 the company has
close to 800 stores but the company has filed for bankruptcy and plans to close
178 stores in the US alone and up to 350 stores overall the company’s plan is to
focus on maximizing the value of its US stores the company plans to exit most of
its international locations in Asia and Europe it is planning to cease
operations in 40 countries including Canada and Japan the company is planning
to continue with men and women merchandise but would exit areas like
electronics cosmetics and home decor so both of its founders were Korean
immigrants who moved to the US for a better life jin-sook served as a hairdresser
while Do Won pumped gas and served coffee but he noticed that a lot of rich people
were in the garment business so with the three-year savings of around
$11,000 they opened their first store named fashion 21 now this store did
really well among the korean-american community and they made $700,000 in
sales in the first year soon they started opening new stores changed their
name to forever 21 and did really really good business so the key point of this
brand was fast fashion which means that they were very quick in bringing new
designs but there have also been a lot of controversies that this brand copies
its designs from the other brands so what are the reasons behind the fall
of this brand the company expanded too aggressively while technology was
beginning to disrupt its business they expanded from seven countries to 47
countries within a less than six year time frame and the retail industry is
obviously changing there has been a lessening of mall traffic and the sales
are shifting more to online now this is being called the retail apocalypse most
brands today are getting fierce competition from their online
counterparts especially Amazon even the young customers are now losing interest
in throwaway clothes and are more interested in buying eco-friendly
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