Los Angeles, 10/01/2019, 6:17 PM | Updated an hour ago
The American clothing store Forever 21, which employs 30,000 people, is in financial trouble because of poor Internet sales and excessive competition. Company management said they had applied for bankruptcy protection as many branches had to be closed.
Founded in 1984 in the United States, Forever 21 has 815 stores in 57 countries. The company's management recently announced that they would stop trading in Japan and close all of its branches there. They plan to do the same in the rest of Asia and Europe, while still working in Mexico and Latin America. They cite too much competition as a cause of poor sales and point their finger at H&M and Zaro. Among other things, the online store was accused of being late in their business plan.
Recall that the mentioned store already had problems selling it online because customers were offended by the fact that they were provided with protein pills. But it is now facing a major loss, with plans to close 250 to 300 stores, including 178 in America. They are still negotiating with the owners of the offices where they work, but they promise to continue to be present in the market and focus primarily on online shopping.