Popular American fashion retailer Forever 21 on Sunday filed for bankruptcy and is now set to shut down at least 178 of its over 800 outlets.
According to Linda Chang, the company’s executive vice president, filing for bankruptcy is “an important and necessary step to secure the future of our Company, which will enable us to reorganize our business and reposition Forever 21.”
Forever 21, which is based in Los Angeles, was founded in 1984 by Do Won Chang and his wife Jin Sook; immigrants of South Korean origin.
“The chain expanded quickly in suburban malls, and catering to young girls and women with a mix of inexpensive basics,” wrote CNN.
“The company perfected the fast-fashion model, drawing in customers with its frequently updated mix of clothes than what was offered at department stores or single brands.”
The retailer becomes the latest victim to the rising popularity of online shopping which, according to CNN, has cut foot traffic to malls and stores; leaving traditional retailers battling high debts and spiraling rent costs.
Other popular American traditional retailers that have, within the past five years, filed for bankruptcy and closed some or all of their stores include Wet Seal, America Seal, Delia, Aeropostale and Charlotte Russe.
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