Forever 21 to keep operating in Philippines

MANILA, Philippines — The local stores of fast fashion giant Forever 21 will continue to operate, unaffected by retailer’s bankruptcy filing in the US,  SM Retail Inc. said.

“There is no effect on our Philippine operations,” SM Retail president and chief executive officer Ponciano Manalo Jr. said in a text message.

Forever 21 operates in the Philippines through a partnership with SM Retail.

The fashion brand launched in the country in July 2010 by opening its first store in SM Megamall.

To date, there are 15 Forever 21 stores in the country.

Forever 21 Inc. recently filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code.

In its letter to customers dated Sept.29, Forever 21 said the filing was made to allow the company to continue operations, while reorganizing the business so it could return to profitability.

“This does not mean that we are going out of business – on the contrary,  filing for bankruptcy protection is a deliberate and decisive step to put us on a successful track for the future,” Forever 21 said.

“Most importantly, our stores are open and it will continue to feel like a normal day – you will not see any changes in our stores, gift cards will continue to be accepted, and our policies, including returns and exchanges, remain the same,” the retailer added.

While part of the filing is a request for approval to close a number of stores across the US, Forever 21 said it expects a significant number of stores to remain open and operate.

“Forever 21 USA continues to operate under the US Chapter 11 guidelines. Their operations will continue and their bankruptcy filing allows them to reorganize in a manner that will improve overall sales and operations,” Manalo said.

Reports said Forever 21 has plans to exit some markets in Asia and Europe, but will continue operating in Mexico and Latin America.

Manalo said Forever 21 Philippines, however, remains one of the stronger global operations.

“We will continue to offer up to date merchandise and are gearing up our marketing investments for the coming Christmas season,” he added.

Forever 21 said it is confident the recent move is the right path for the long-term health of the business.

“Once we complete a reorganization, Forever 21 will be a stronger, more viable company that is better positioned to prosper for years to come. We look forward to continuing to provide you with the great service and curated assortment of merchandise that you expect from us,” it said.