A Forever 21, an American fashion retail chain favored by millennials, is closing its doors in Brazil. Its 15 stores should be closed later this week, until next Sunday (19). According to privileged information, after eight years in Brazil, the retailer is offering unmissable discounts for finalize its activities amid a judicial restoration in the United States and several lawsuits in territory national. Check out more information about the closure of Forever 21 activities in Brazil!
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The pinnacle of Forever 21
In 2015 the company reached its peak and earned almost US$ 4.4 billion in sales in its more than 600 stores, distributed in 47 countries, with the founders reaching a combined net worth of $5.9 billion.
Apparently everything was going well, as the business of fast fashion was growing and Forever 21 was doing well compared to its competitors, believing it would stay that way.
Financial instability and legal problems ruin Forever 21
In the case of Forever 21, there are several factors. The company has faced difficulties outside Brazil since the pandemic caused a drop in sales worldwide. Thus, in September 2019, the company filed for bankruptcy in the United States and announced the closure of its stores in several countries.
According to experts in fashion, that was the trigger for the Forever 21 stores to close down activity throughout the Brazilian territory. That said, given the store's situation, it was only a matter of time before that happened.
Is this the end of a generation of fast fashion?
The bankruptcy of an emblematic brand of the fast-fashion model led to a series of conclusions that we are approaching the end of an era marked by the exaggerated consumption of cheaper clothes. What these conclusions do not analyze are the data and context, as they are underpinned by the emerging debate about sustainability, transparency and “conscious consumption”.
A closer look at both aspects reveals that, in fact, Forever 21's bankruptcy has more to do with a lack of strategy and difficulty in adapting to an increasingly dynamic market than with socio-environmental issues of consumers.