Fast Fashion Chain ‘Forever 21’ Files For Bankruptcy

The fashion and clothing retailers filed for bankruptcy on Sunday, joining the ever-growing list of US merchants unable to compete with the popularity of e-commerce.

More than 20 American retailers have declared bankruptcy, such as Toys ‘R’ Us and Sears Holding Corp. for this reason. Forever 21 plans on shutting down up to 178 stores across the US and Canada, as well as most stores in Asia and Europe. The company previously had 815 stores in 57 countries. With better financing and fewer stores, the family built company hopes to rid itself of unprofitable outlets and raise fresh funds. However, many think the reason behind the failing business is not e-commerce competition, but rather the way the retailers keeps up with trends and stock their stores.

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