By: Alexa MonosForever 21 is falling into the same fate as many retail stores. The “retail apocalypse” has seen many famous brick and mortar stores close. Consumer shopping online is becoming a global trend however, due to increased convenience, increasing the power of e-commerce businesses like Amazon while causing the downfall of many retail businesses. Due to efforts to restructure the features of Forever 21, this family-held company is closing stores in 40 countries, including Canada and Japan. It will close up to 178 stores in the United States and up to 350 overall. “What we’re hoping to do with this process is just to simplify things so we can get back to doing what we do best,” Linda Chang, the chain’s executive vice president, stated in an interview dealing with this dilemma.
Ms. Chang’s parents, Do Won and Jin Sook Chang, who both still run the chain, founded Forever 21 in the 1980s after immigrating to California from South Korea. Some felt that the company expanded too aggressively just as technology was beginning to upend its business. Forever 21 saw its revenue drop to $3.3 billion last year, down from $4.4 billion in 2016. With the restructured company, there are expectations that the net revenue of the company will bring in $2.5 billion in annual sales. As of now, the company employs about 32,800 people, which is lower than the 43,000 people employed in 2016. To make this renovation easier, the company has obtained $275 million in finance from two lenders, JPMorgan Chase Bank and $75 million from TPG Sixth Street Partners. “This was an important and necessary step to secure the future of our Company, which will enable us to reorganize our business and reposition Forever 21,” said Linda Chang. She believes that the financial aid provided by JPMorgan and TPG Sixth Street Partners will serve to “Arm Forever 21 with the capital necessary to effect critical changes in the U.S. and abroad to revitalize our brand and fuel our growth, allowing us to meet our ongoing obligations to customers, vendors and employees.” Chang is confident that once these changes to the company are finished Forever 21 “will emerge as a stronger, more competitive enterprise that is better positioned to prosper for years to come” She also states how the company, will remain committed to delivering the fast fashion trends that our customers have come to expect from Forever 21,” she added.
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Co-Editor - Adith GopalHello, readers! My name is Adith, and I am a senior and current Co-Editor of the Wilson Paw Print. I hope you can enjoy getting informed on some current news here at Wilson and abroad! If you have any questions about myself or the newspaper as a whole, email me at [email protected]! Co-Editor- Alexa MonosMy name is Alexa Monos and I am a co-editor of the Wilson Paw Print. If you have any questions or ideas about the newspaper or wish to get involved email me at
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