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BUSINESS Tuesday 1 OcTOber 2019
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Forever 21 bankruptcy reflects teens' new shopping behavior

By ANNE D'INNOCENZIO tional stalwarts like Aber-
AP Retail Writer crombie & Fitch and Ameri-
NEW YORK (AP) — For years, can Eagle.
teens flocked to Forever Their popularity grew during
21's massive stores at the the Great Recession, when
nation's malls for its speedy shoppers sought fashion
take on fashion, like its $5 bargains. But Forever 21
shimmery halter tops and went on an aggressive ex-
$25 dresses. pansion just as shoppers
But the chain that helped were moving more online.
popularize so-called fast Now, it's closing as many as
fashion has moved too 350 stores globally, includ-
slow for a new generation ing as many as 178 stores
of young customers. in the U.S. As of the bank-
The Los Angeles-based pri- ruptcy filing, it operated
vately held chain filed for about 800 stores globally,
Chapter 11 bankruptcy including more than 500
Sunday, a victim of rapidly stores in the U.S. The com-
changing shopping tastes pany says it will still operate
among teens who are in- its e-commerce business,
creasingly turning away which accounts for 16% of
from malls and heading to total sales.
trendy online sites. "The world has changed,
They're also interested in and Forever 21 didn't Fashions are displayed in the window of a Forever 21 clothing store, Monday, Sept. 30, 2019, in
buying eco-friendly fash- change with it," said Stacey New York.
ions, like pants made from Widlitz, president of SW Re- Associated Press
recycled plastic, not stuff tail Advisors. "And the walls
they'll just throw away af- closed in, in terms of the Associated British Foods, for fast-fashion companies ing conditions at factories
ter a few uses. And they're competition." opened its first location in like Forever 21: and their environmental
gravitating toward online Widlitz and others noted the U.S. in 2015. Now the NEW ONLINE FAST-FASHION efforts. For example, on-
second sites where clothes that the chain was also fashion chain, which sells RIVALS line fashion site Asos says
can be used over and over dogged by the deteriorat- $10 jeans and $4 T-shirts, Over the last 10 years or so, that this year, cashmere,
again. In fact, the sec- ing quality of its clothing. has nine locations in the a slew of online-only fash- mohair, feathers, down silk,
ondhand fashion business Still, fast fashion isn't dead; U.S. and is faring well. It too ion retailers have popped bone horn and shell will be
is projected to reach $64 it's just being reinvented. is focusing more on the en- up with names like Fashion banned from its websites.
billion by 2028, nearly 1.5 Swedish chain H&M, which vironment and announced Nova, Nasty Gal and Boo ECO-FRIENDLY CLOTHING
times the size of fast fash- has struggled to keep up last month a dramatic in- Hoo. For example, Boo Ho Young consumers are also
ion, according to a report with competitors, is show- crease in its sustainable says it drops more than 100 looking at digital natives
by Global Data Retail. ing signs of a comeback cotton program. new products daily. like Allbirds and Everlane
The bankruptcy marks a and is reinventing itself by Sonia Lapinsky, a manag- "These sites are curated that are not fast-fashion
dramatic fall for the retail- offering more eco-friendly ing director in the retail better and they're fun," said sites but offer fashion ba-
er. Forever 21 was founded fashions. The chain, which practice at AlixPartners LLP, Widlitz. sics that are easy on the
in 1984 and, along with once set the standard for says a retailer's success isn't They also can afford to environment. That's forced
other fast-fashion chains speed by flying in frequent just about speed. have lots of sales since many traditional retailers in-
like H&M and Zara, rode a small batches, is also digitiz- "They need to deliver the they're not weighed down cluding fast-fashion chains
wave of popularity among ing certain areas of its man- right products, the right sto- by physical stores. Each to develop products that
young customers that took ufacturing process. ry and be sustainable, "she also dedicates a section on are made of recycled ma-
off in the mid-1990s. It even Primark, which is based said. their website to their code terial or change their man-
stole customers from tradi- in Ireland and owned by Here are three big hurdles of conduct regarding work- ufacturing process.q