The American clothing chain Forever 21 denies that it wants to file for bankruptcy, in response to new stories from insiders that say there are plans to do so on Sunday. The Wall Street Journal reports this Thursday.
Declining sales, online competition and changing consumer needs would take their toll, which would offer bankruptcy a solution. The idea is that the chain can close loss-making stores and make a fresh start.
However, Forever 21 writes Wednesday evening in response to the rumors that the goal is to keep "the vast majority of stores in the United States, and a smaller proportion of international stores," open.
The company is said to be in talks about more financing, but so far without success. Retail experts say that Forever 21 greatly expanded the number of physical stores as online shopping became more popular. That is why closing loss-making stores would be a good idea for the chain.
Forever 21 was founded in 1984 and has eight hundred stores in the United States, Europe, Asia and Latin America. The chain has one store in the Netherlands. There are around seven hundred in total worldwide.