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Forever 21 urges landlords for a break in rent

  

With its sales declining and competition rising, Forever 21 is urging landlords for a break in rent.

With over 380 stores in the US, the brand has asked some landlords to cut its rent by as much as 50 per cent. The company is yet to hire advisors and isn’t considering a second bankruptcy protection filing

Facing a range of issues, Forever 21 operates in the increasingly saturated fast-fashion market. The retailer filed for bankruptcy protection in 2019 and was later bought by a consortium including a brand management company Authentic Brands Group and landlords Simon Property Group and Brookfield Property Partners.

When the company sought bankruptcy protection, it had more than 800 locations globally. However, the massive store count weighed on its balance sheet, making it impossible for the brand to invest in its supply chain and respond to changing trends rapidly. Even closing hundreds of stores did not resolve its issues.

Forever 21′s financial position has also hurt the performance of its operator Sparc Group — the joint venture that includes Authentic, Simon and as of last summer, Chinese-linked fast-fashion behemoth Shein. Sparc runs Forever 21′s operations, as well as several other formerly bankrupt retailers, including Aeropostale, Brooks Brothers and Lucky Brand.

 
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