Forever 21 filed for bankruptcy – Is there a chain collapse about Fast-Fashion?

The Forever 21 brand has officially filed for bankruptcy protection and the news is spreading. According to the Bankruptcy Court, the brand is valued at assets ranging from $ 1 billion to $ 10 billion.

Forever 21 filed for Bankruptcy but is still active

Chapter 11 of the Bankruptcy Act allows Forever 21 to continue running the business to find payment options for credit institutions. Up to now, the group has received investment from JPMorgan, Chase & Co, and more than $ 75 million in investment from TPG Sixth Street Partners.

Linda Chang – Vice President of Forever 21 announced: “The grant provided by JPMorgan and TPG Sixth Street Partners will provide Forever 21 with the capital needed to make important changes in the US and Foreign countries aim to restore our brand and promote our growth, allowing us to meet our ongoing obligations to customers, suppliers and employees. “

Thus, the brand will continue to operate until the return of investments, which signals the difficulty ahead of the Fast-Fashion industry, besides Forever 21, there are Topshop, Topmen also meet. Challenging, big man like Zara is also facing many challenges. The market is extremely competitive and there will be new developments in the coming time.

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