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Forever21 filed for bankruptcy, and the e-commerce fell again in the cold winter

Forever21 filed for bankruptcy, and the e-commerce fell again in the cold winter

Last week, Forever21 announced that it would withdraw from the Japanese market by the end of October, triggering bankruptcy rumors. Today, I didn't expect that this day would be announced so soon.

On the 30th, Forever 21, an American fast fashion brand, announced that it had filed for bankruptcy protection under Chapter 11 of the U.S. bankruptcy law to restructure its business. It said it would close its 178 stores.

So far, Forever 21 officially announced that it has become another 'victim' of e-commerce competition.

Founded in 1984, Forever 21 opened more than 800 stores in 57 countries in the United States, Europe, Asia and Latin America. It entered the Chinese market in 2008, but withdrew from the Chinese market at the end of 2009 due to problems such as the location of its first store and product quality, and then made a comeback in 2011. However, it finally withdrew from the Chinese market after eight years of operation.

According to CNBC's previous report, while the business is struggling, Forever 21 has been exploring restructuring plans to enhance liquidity. However, these efforts have little effect and are more likely to go bankrupt. Dragged down by large and expensive stores, Forever 21 finally fell.

In fact, it is shown that by the first quarter of 2018, the top ten fast fashion brands, including h m, Zara, UNIQLO UNIQLO, mjstyle, Muji Muji Muji, new look, ur, CA, Forever 21 and gap, had only 25 new stores in the mainland (excluding upgrading and reopening stores). Compared with 2017 and 2016, the number of new stores was greatly reduced by about 40% and 38% respectively. The post-90s and post-00s seem to be less and less interested in fast fashion, and this industry has ushered in a 'cold winter'