The online shopping market is expanding gradually and it has seized the consumers with their quality products and consumer satisfaction.
Lately, Forever 21 is experiencing a lesser number of footfalls in the clothing business. To avoid potential future bankruptcy the teen clothing retailer has hired restructuring advisers.
“Forever 21 has hired restructuring advisers to help negotiate exits from stores and raise a new loan, according to people familiar with the matter” reports The Wall Street Journal.
The company plans to raise debtor-in-possession funds from Apollo Global . It is also reported that the company is hiring Latham & Watkins LLP to renegotiate its lease terms with its landlords.
Another reason for this potential crisis is due to their shop location which is inside the mall premises where fewer consumers savor spending their hard earned money. The consumers are provided with ample other brands which give them the same level of satisfaction with a lesser price tag. The increase in the figures of competition amongst brands is harsh and consumers are becoming aware as to the things that require a hefty investment and things that doesn’t.
