""We've been unable to find a sustainable path forward, given competition from foreign fast-fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin.""
""Brick-and-mortar retailers like Forever 21 operate in a highly competitive environment where the cost of doing business is expensive and rising with inflation rates.""
Forever 21's US operator has filed for bankruptcy for the second time in six years, planning to wind down operations due to increasing competition from online fast-fashion retailers. Challenges like rising costs, diminished mall traffic, and foreign brands capitalizing on duty-free exemptions have severely impacted the company's pricing power. Founded in Los Angeles in 1984, Forever 21 saw significant popularity, but the decline in brick-and-mortar sales combined with swift retail industry changes has led to its current predicament. Liquidation sales are expected as part of the company's closing process.
Read at www.theguardian.com
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