MANILA, Philippines — Bad news: Fashion retailer Forever 21 has declared that it has filed Chapter 11 bankruptcy protection in the United States to reportedly restructure its business.
The good news: Forever 21 shops in the Philippines will not be affected by the move, a representative of mall chain giant SM told Philstar.com.
Forever 21 came to the Philippines through a partnership with the SM Retail Group. It opened its Philippine flagship store in SM Megamall in 2010.
Reports said the American fast fashion label recently filed bankruptcy due to “fierce e-commerce competition” from the likes of Amazon and plans to close most of its international stores in Europe and Asia, but will continue to operate in Mexico and Latin America.
Reports added that the company will halt operations in 40 countries and will close 178 stores.
Early this month, US pop star Ariana Grande sued the brand for allegedly using her trademark style to promote its products without her permission, including adverts featuring a "look-alike model."
Originally founded as Fashion 21 in Los Angeles, California in 1984, Forever 21 offers beauty products as well as ready-to-wear and accessories for women, men and children.