Coresight research estimates in 2025 will have another wave of retail closure because heritage companies are facing relentless competition.
Fast fashion fashion retailers forever 21, On the eve of a file to protect bankruptcy for the second time, it is expected to shutter all its stores.
Sara Face, the legal chief of Debortwire, projects that retailers can register for Chapter 11 in the next few weeks, and make her assets, including 350 stores, as part of the liquidity process.
FOSS, explaining that a dissolution explains that a dissolution would have a significant impact, but in shopping malls throughout the country, which has been hampected in recent years, said: “The dissolution of Chapter 11 is likely to be a retail chain as a buyer of concern for US assets and US leases.” Online shopping.
Earlier this week, a familiar source told Bloomberg that the company is preparing to close at least 200 locations as part of the bankruptcy process.
Pressure of the shin, Temeu accelerates retail closure
According to Fus, the clothing chain has had problems since its first visit to Bankruptcy in September 2019, during which more than 100 stores have closed their 534 stores and sold the rest to a buyer consortium.
Forever 21, owners of reputable brands and Properties Simon, a joint venture, created the Sparc group to keep the company alive in 2019. In January, the Sparc group collaborated with JCpenNE to form a new organization called Catalyst Brands.
A Forever 21 store in New York, February 7, 2025. (Yuki Iwamura / Bloomberg through / Gitti Pictures)
Debt data shows that the retail sector has been challenged since the beginning of 2024 with 20 chapters 11.
The company has also seen a particular increase in “Chapter 22 cases”, referring to companies that have entered bankruptcy for the second time. According to debt data, about 25 companies have been doing this since 2016.
Specifically, FOSS is falling forver21 in competition with low -cost retailers such as Shein and TEMU, along with “significant stores that are expensive for work”.
US retail closure since the epidemic has gained the highest level
Coresight Research, a retail and technology specialist company, estimated in January that the closure would increase to 15,000 in 2025, in the majority of “competitive pressures” from the rapid fashion and TEMU.
Buyers walk in the center of San Francisco, December 27, 2007. (David Paul Morris / Gitti Pictures)
Rival companies have increased in recent years as bumps Consumers of inflation Cheap prices leveraged them. Both companies offer a range of low -priced products and garments, although they have received strong criticism of work practices, environmental concerns, and commercial ethics such as intellectual property violations.
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However, FOSS said that even if 21 retail locations are closed forever, this would not show the end of the company.
“This brand and intellectual property still belong to the group of valid brands and may not be part of the dissolution of bankruptcy,” FOSS said. In fact, intellectual property can be of significant value even if distress sales. ”