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Forever 21 Goes Bankrupt Again

Fast fashion chain struggles with debt and changing shopper tastes.

Retail, Marketing and Advertising Pricing Product Distribution Supply & Demand Chapter 1 Taking Risks & Making Profits Chapter 2 Economics Chapter 3 Globalization Chapter 9 Production & Operations Management Chapter 13 Marketing Chapter 14 Product & Price Chapter 15 Distribution Bonus Chapter B Video Blog Understanding Business Higher Education

Way back in 2019, we looked at how Forever 21 filed for bankruptcy after expanding too rapidly and spending too little on e-commerce technology. Although a buyout from a licensing firm kept the company afloat for a few years, this video looks at how Forever 21 has struggled to compete with global powerhouses like Shein and Temu, leading to yet another bankruptcy. 

Questions:

  1. How did Forever 21’s enormous stores go from a selling point to a burden on the company?
  2. Why has Forever 21 struggled to compete with e-commerce operations like Shein and Temu?
Author: NickelsMcHughMcHugh

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