Forever21 Filed for Bankruptcy Last September. What's next for this Fast-Fashion Empire?

When fast-fashion retailer Forever21 filed for bankruptcy 9 months ago and then, like many other retailers, suffered financially as a result of COVID-19 closures, many wondered if this would be the end of the trendy, low-priced clothing store popular young people. However, one of Forever21’s new owners, Authentic Brands Group, has announced other plans.

According to AdWeek, Authentic Brands has partnered IB Group with plans to expand Forever21 into Mexico, and later Central America, South America, the Caribbean, and even the Philippines. With this design, 37 new stores will be opening across Mexico. Forever21’s new owners Authentic Brands, Simon Property, and Brookfield Property also plan to launch new lines of various accessories including jewelry, shoes, and handbags. They say they hope to launch fresh new marketing campaigns and collaborate with influencers in order to gain back their young customers they've lost in recent years.

Leading up to its filing for bankruptcy, Forever21 faced challenges from rising online competitors such as BooHoo, Fashion Nova, ASOS, and H&M. In its prime, the retailer stayed on top of trends almost as soon as they emerged, however, in recent years Forever21 has become more of the butt of the joke in terms of style, trendiness, and quality. Additionally, they have been hit with 50 copyright lawsuits in the past decade as a result of efforts to mimic success from other brands such as Gucci and even Ariana Grande. It goes to show that while the retailer experienced impressive and speedy growth, this culminated in an equally speedy demise. However, many loyal customers remain globally, and they will be looking forward to see what the future holds for this re-branded, newly-owned Forever21.

Forever21 was sold to Authentic Brands, Simon Property, and Brookfield Property for a whopping $81 million back in February. Authentic Brands Group is somewhat known for buying out stores in bankruptcy. They also own other notable retailers such as Barney’s, Juicy Couture, Aéropostale, and Nine West.

Report: Grace Carlos

The Iconic Victoria’s Secret Will Shutter 250 of its Stores

The coronavirus pandemic has forced countless businesses to file for bankruptcy. Many are struggling to make ends meet and keep up with finances, resulting in drops in sales, leaving them hopeless with nowhere to turn.

The iconic Victoria’s Secret is closing down 250 stores in shopping centers and other locations in the U.S. and Canada.

Victoria’s Secret is prestigious for its women’s lingerie, fragrance, body care, accessories and athletic and loungewear. The brand is also notorious for its celebrated Angels and fashion events. Victoria Secret’s products are sold in more than 1,600 stores worldwide and online at VictoriaSecret.com

The store has continuously seen a drop in sales amid the coronavirus pandemic.

Along with its stores closures, the brand’s parent company, L Brands, will eliminate 22% of the company’s 1,091 stores along with 1.26 million square feet of real estate, according to ABC News.

Victoria Secret’s CEO Stuart Burgdoefer has indicated that there will be additional store closures in the future saying: “We would expect to have a meaningful number of additional store closures beyond the 250 that we’re pursuing this year, meaning there will be more in 2021 and probably a bit more in 2022.”

Bath & Body Works, another brand under the mass retailer is also expected to close 50 stores nationwide and one in Canada.

Although Bath & Body Works climbed 20% in soap and sanitizer sales, L Brands dropped 37% in sales across its brands during its first quarter of business amid the coronavirus pandemic, according to ABC News.

Victoria Secret shoppers expressed their concerns and frustrations on Twitter with one user saying: “#VictoriaSecret I was rooting for you, we were ALL rooting for you.”

While another person tweeted: “that’s what I’m saying they want us to buy that shit where???? Walmart? #dobetter @vsactu @VSPINK @bathbodyworks like ok u want us roaming around smelling like that bootleg perfume from urban planet? Mhmh ok.

As you can see loyal customers are not too happy about the stores closures and their clearly not having it.

With the stores closures in effect, definitely expect to see MAJOR sales. STAY TUNED!!!

Report: Juana Norales Instagram: @juana.n_

Things Aren't so Glamorous for Neiman Marcus

Things for high-end fashion brand Neiman Marcus aren't looking so pretty right now. Last Thursday, it was revealed that the company had filed for Chapter 11 bankruptcy, after previous reports were rumored in mid-April. Prior to this, the brand was already four million dollars in debt. CEO Geoffroy Van Raemdonck made a statement to CNBC saying, "Like most businesses today, we are facing unprecedented disruption caused by the COVID-19 pandemic, which has placed inexorable pressure on our business."

According to the Financial Post, the paperwork was filed in a Houston courthouse. Neiman Marcus and their creditors agreed to a $675 million dollar financial aid package to help the company restructure. In addition, they also agreed to a second package of $750 million dollars from creditors. This would not only help with their bankruptcy, but also supply extra liquidity for them, when they eventually recover from their struggles. Lastly, this deal completely puts the creditors in charge of the business, and will have them become the majority owners this fall, once the company is likely to recover.

Neiman Marcus is one of many major brands and companies struggling financially during 2020's COVID-19 pandemic. J-Crew also filed for Chapter 11 bankruptcy recently. However, Neiman Marcus was experiencing some struggles prior to the pandemic, which naturally increased once the pandemic hit. As per Bloomberg, Neiman Marcus had started closing outlet stores in March, and 500 jobs were cut within the operation.

Report: Corine Gauthier