Forever 21, US fast-fashion giant, has filed for Chapter 11 bankruptcy protection and announced that it will make its exit from most international locations in Asia and Europe.
Forever 21 had over 800 stores in 57 countries across the globe. The chain announced that it would now file a motion to close up to 178 of its stores. However, the decision as to which domestic store will be closed is still pending.
The move comes as traditional retailers continue to struggle against the rise in competition posed by online retailers. The US fashion retailer stated that it has obtained $275m in financing from the existing lenders and $75m in new capital to assist with the global restructuring.