Forever 21 Files for Chapter 11 Bankruptcy
October 7, 2019
On Oct. 1, Forever 21 filed for Chapter 11 bankruptcy. Over the years young people have gone to Forever 21 as a place to look for cheap and trendy clothes. Despite being unethical with situations of committing plagiarism and using sweatshops for manufacturing their clothes, people still come back to them. However, online shopping is growing more popular, and Amazon has been known to run other retail stores out of business.
But before Forever 21 filed for bankruptcy, they reported that they were going to shut down their chain in Japan as well as stores in the rest of Asia. In addition, rumors swarmed of chapter 11 bankruptcy, which eventually did happen yesterday morning. Chapter 11 bankruptcy means that Forever 21 has a chance to overall reorganize their company. Forever 21 filed for voluntary bankruptcy in order to have the protection that comes with it.
Opinions about Forever 21 vary. Sophomore Ysa Chavis appreciates their good deals but does not like the bad quality. The same goes for freshman Amelia Bowen explaining how every now and then she will go to Forever 21 to scout for new deals. In addition neither Chavis or Bowen are a regular shopper at Forever 21 usually giving into other brands like Pacsun as commented by both Bowen and Chavis. The reason for this is because Pacsun has come up with an original style and that is attractive to the everyday consumer. Chavis said, “Forever 21 sticks to the trends. They don’t really have their original style, which is why I go to other stores like Pacsun and Hot Topic,” Forever 21 loosing their target market to their other retails might have something to do with the fact thye’re filing for protection from Chapter 11 bankruptcy.
Furthermore, the shopping experience is usually stressful. Chavis said, “The experience is usually discouraging because of how long she is in there.” This gives shoppers more time to think over their purchases, rather than buying on impulse, something a company like Pacsun, with their smaller platform, relies on.
Also, the marketing skills that Forever 21 utilizes is not appealing to their target market. Chavis describes is as pushy and unorganized, including their online store, making a point they go all out, repelling their customers.
The consumers usually comment on the good deals Forever 21 has and how that is the only reason why they keep coming back. Bowen asked, “How are they going to stay in business selling for clothes so cheap?…They can’t be making much profit.” More and more are people are losing faith in Forever 21 for the same reason, according to Fast Company. Their bankruptcy might give them a chance for restructuring the company in hopes to get back their clientele if that is the only thing standing between them making a profit. However, Forever 21 might be able to surprise everyone and come through with a stronger retail company than ever.
Riley Rose, their partnered cosmetic brand, also has some issues that connect with Forever 21. Both companies show a failed marketing system. For example neither Chavis or Bowen have been inside Riley Rose, let alone buy anything. Nevertheless, sophomore Cora Bechum, sophomore and junior Rachel Geisser have not even heard of them. That just goes to say that they are both regular shoppers of cosmetics and if they cannot draw in their own market how to they also expect like Forever 21 to stay in business? Riley Rose will continue to stay in business as Forever 21 shuts down. Both retailers are missing out big when it comes to their target market.
The target market for Forever 21 is usually young female millennials and female gen Z. While they also market to men for the same generations males do not always appreciate want Forever 21 offered. Sophomore Robert Gref has never been inside Forever 21 and instead goes to places like Pacsun and Nordstrom. Gref said, “I like the food inside Nordstrom as well as a wide selection of clothing.” To add on Senior Jason Li “buy(s) from outlet malls.” He also commented that he does not shop at Forever 21 despite their selection of male clothes. Once again, Forever 21 has been losing to their other competitors but this time they are losing clientele that make up around half the population.
Forever 21 has been around for ages marketing to the younger generations, but nothing can last forever as Forever 21 continues to struggle more and more with keeping their consumers, especially finding a group of loyal customers now dealing with more issues filing for bankruptcy at last. Contrasingly, Junior Rachel Geisser said, “ I don’t think Forever 21 will go bankrupt because of how popular they are.” But Chavis and Bowen find their damage to the social and physical environment to be very obnoxious because they only care about being “cliche.” At the end of the say only Forever 21 can determine if they follow through with their claim for reconstruction in their company or if they will shut down for good because of their scandals and poor marketing strategies.