Forever 21, a well-known fast fashion store, is talking about restructuring plans to strengthen the company’s cash flow.
CNBC quoted sources as saying that Forever 21 negotiated with private equity firm Apollo Global Management to discuss financing when filing for bankruptcy.
Recently, the fast fashion market is changing. Many fast-growing giants have encountered difficulties in the early years, due to changes in consumer tastes and more inclined to shop online. Many stores such as Forever 21 are located in shopping malls, but the number of people in the US shopping malls is decreasing. Many companies have lost their revenues. Companies such as Aeropostale and Rue21 have declared bankruptcy.
At present, Forever 21 has more than 815 stores worldwide. A company spokesperson responded to CNBC and stated that the company “negotiates with lenders in normal business processes and abides by all commercial agreements, and the company will continue to operate as usual.”