Network of shops of cheap clothes from Forever 21, which always been a popular place for shopping among teenagers, will close all of its canadian branches 44 and 178 in the United States in the framework of the protection of creditors in case of bankruptcy.
The Los Angeles-based company filed for protection programme in the framework of canadian and American laws and has confirmed today its plans to close all its outlets in Canada.
The company said that the focus will shift on the quality of their stores in the U.S., which is now approximately 500 locations.
“All 44 of the canadian store Forever 21 will close before the end of this year, and we have plans to conduct liquidation of goods in the nearest time,” the company said in an official newsletter.
It is noted that canadian buyers will be able to continue buying through the us web site.
Forever 21 will also close most of its stores in Asia and Europe, but will remain in the market of Mexico and Latin America.
According to statistics, the crisis has affected all the traditional trading floor. So, this year for us retailers announced the closure of 8,558 stores and opening 3,446, according to the world research group Coresight Research. For comparison, in 2018 for the full year was 5,844 closed shop and open 3,258.
By the end of 2019 according to the forecast Coresight Research, can be closed in the order of 12,000 stores in the United States. And canadian sellers see approximately the same situation.
For example, due to bankruptcy in February, closed 248 canadian stores Payless ShoeSource.
The company Forever 21 was founded in 1984 and, along with other similar clothing stores (like H&M and Zara) quickly became popular among young people.