Forever 21 to close almost 180 outlets in the US
By Rama Venkat - Oct 1st, 08:55
Fashion retailer Forever 21 filed for bankruptcy last week, as it joined a growing list of brick-and-mortar players who have succumbed to the onslaught of e-commerce companies such as Amazon.com.
Since the start of 2017, more than 20 US retailers, including Sears Holdings and Toys R Us, have filed for bankruptcy as more customers shop online and eschew large malls.
Forever 21 said the restructuring will allow it to focus on the profitable core part of its operations and shut some international locations.
“We have requested approval to close up to 178 stores across the US. The decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords,” the company said in an e-mail statement.
Founded in 1984, the retailer said it has 815 stores in 57 countries.
The company plans to close most of its stores in Asia and Europe. However, it does not expect to exit any major markets in the US.
Last week, Forever 21 had said it would exit Japan and close all 14 stores at the end of October. The company also said its Canadian subsidiary filed for bankruptcy and it plans to wind down the business, closing 44 stores in the country.
Forever 21 will continue operations in Mexico and Latin America.
The company lists both assets and liabilities in the range of $1bn to $10bn, according to the court filing in the US bankruptcy court for the District of Delaware.
The retailer said it received $275m in financing from its existing lenders with JPMorgan Chase as agent, and $75m in new capital from TPG Sixth Street Partners, and certain of its affiliated funds.
Kirkland & Ellis was serving as the company's legal adviser, Alvarez & Marsal advised on restructuring, and Lazard acted as its investment banker.Business Live
Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.
Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.
Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.
Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.
Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.