The future of fast fashion is looking very questionable
It looks like fast fashion is taking yet another hit this year as news has come that fashion retailer Forever21 has filed for bankruptcy.
The company announced yesterday that it will be filing for Chapter 11 bankruptcy protection in the US. While it has also confirmed that it is expected to close up to 500 of its 800 stores across the world.
To explain the situation in simple terms. Filing under chapter 11 doesn’t necessarily mean that the company is totally going bust. The company now has the opportunity to shed unprofitable stores and recapitalise the business, in the hopes of salvaging it.
The company closed it’s only Irish store in Dublin’s city center last year, while similarly The Arcadia group, who own the likes of Topshop, Topman, and Miss Selfridge also announced this Summer that they would be shutting down many of their Irish stores.
This comes as many fashion retailers struggle to survive in a world where fast fashion is continuously fluctuating. Both high debt levels and rent costs are making it difficult for many traditional retailers to remain in business. Ultimately, making the future of fast fashion questionable.