Forever 21 Declares Bankruptcy and Leaves Colombia: A Look at the Fashion Giant’s Downfall

2024-07-07 22:30:00

Colombia It is a country that usually offers great business opportunities to companies from all over the world, which usually take advantage of it. Although, sometimes, many of them end up hurt by bad administrative decisions or failed sales strategies. Be that as it may, this time we have to talk about a giant in the world of fashion who leaves the country after declaring bankruptcy.

It’s about the brand Forever 21, which failed to achieve the revival it had promised in recent years. After declaring bankruptcy in 2019 and closing many of its stores, the brand had made sure to reinvent itself in our territory, to try to adapt to the new demands of the market and win its loyal fans back, but they were far from meeting. those expectations.

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Although this has been one of the most iconic brands in the market and favored by the youth crowd since it was founded by Do Won Chang and Jin Sook Chang in 1984, this store quickly expanded, opening hundreds shop around the world. However, with the rise of e-commerce and changes in consumer habits, the company began to face financial difficulties. In 2019, the company filed for bankruptcy, closing nearly 350 stores worldwide. behind this, Forever 21 acquired Authentic Brands Group, Simon Property Group and Brookfield Property Partners in an $81 million transaction. Under this new management, the brand has adopted several strategies to regain its position in the market.

One of them is related to our country, since his famous store located in Bogotá’s T Zone, offered an unauthorized sale of his clothes with up to 70% off before he left the people of Bogotá. Although its headquarters in Medellín and Bucaramanga are still operating, its departure from the market will be the same as headquarters Bogotasince the company registered with the Companies Supervision negative equity of $4,556 million, liabilities of more than $42,507 million and assets of $37,950 million.

At the moment, the company introduces fashion Colombia Unmissable promotions on their website with discounts up to 60%. For example, jackets that were previously valued at $140,000 can be found at $62,000, $186,000 at $79,000, and $210,000 at $95,000 for tennis shoes.