UPDATE, 1 October 2019, 4:15 p.m.: Forever 21 Philippines released a statement on September 30 saying "it's business as usual." The fashion retailer assured its shoppers that operations will continue in all F21 stores in the Philippines.
Following Topshop US and Barneys New York, the latest retailer to file for bankruptcy is Forever 21. CNN Philippines writes that the fashion retailer will be closing "up to 178 of its more than 800 stores," following their filing of Chapter 11 bankruptcy. Bloomberg previously reported that "Forever 21 Inc. is preparing for a potential bankruptcy filing as the fashion retailer’s cash dwindles and turnaround options fade."
In a letter to its customers, Forever 21 says that "the decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords." Despite this, the company assures the public that they are still expecting "a significant number of these stores [to] remain open and operate as usual, and we do not expect to exit any major markets in the U.S."
The financial rescue talks began with the company seeking additional financing “to help it restructure its debt but negotiations with possible lenders have so far stalled,” according to the report. However, this option became bleak for the company as potential lenders have not pitched in any money yet. Hence, the company shifted in filing for Chapter 11 Bankruptcy Protection, which will help the company by closing down unprofitable stores and recapitalizing the business.
Prior to Forever 21, a number of big retailers and designer brands have recently filed for bankruptcy too, including Payless Shoe Store, Roberto Cavalli, Topshop US, Barneys New York, Nasty Gal, Nine West, Sonia Rykiel, and more.