NEW YORK– Low-price style chain Permanently 21, a single hot location for teen consumers that succumbed to its very own fast growth as well as changing customer tastes, has declared Chapter 11 bankruptcy protection.
The privately held firm based in Los Angeles claimed Sunday it will close to 178 shops in the UNITED STATE. As of the bankruptcy declaring, the firm operated concerning 800 stores around the world, consisting of more than 500 stores in the U.S.
. The chain presently has 9 locations in Colorado, along the Front Variety. The shops are in the Denver city area in addition to Ft Collins.
The business said it would certainly concentrate on taking full advantage of the value of its UNITED STATE stores as well as shutter specific worldwide places. For life 21 plans to close the majority of its areas in Asia and also Europe however will certainly proceed running in Mexico and also Latin America.
“The choices as to which residential shops will certainly be closing are continuous, pending the end result of continued discussions with property owners,” it said in the declaration. “We do, nevertheless, expect a substantial variety of these stores will certainly stay open and run as common, and also we do not expect to leave any major markets in the UNITED STATE”
For life 21 joins Barneys New York and Diesel U.S.A. in a growing list of stores looking for insolvency defense as they battle on the internet competitors. Others like Payless ShoeSource and also Charlotte Russe have closed down entirely.
The numbers substantiate the dilemma dealing with conventional sellers. Much this year, openly traded U.S. retailers have introduced they will certainly shut 8,558 stores and open 3,446, according to the global research study company Coresight Research. That compares with 5,844 closures as well as 3,258 openings in all of 2018.
Coresight approximates the store closures could number 12,000 by the end of 2019.
Permanently 21 was started in 1984 as well as, along with other so-called quick fashion chains like H&M and also Zara, rode a wave of popularity among young clients that took off in the mid-1990s.
Their appeal grew during the Great Economic downturn, when consumers sought style bargains.
Over the last year or so, quick style has dropped out of design. Youthful consumers are disliking throw-away garments as well as are extra interested in acquiring green items. They’re likewise being attracted toward rental and also on-line used websites like Thredup, where they see clothing worn again rather than winding up in a garbage dump.
These fads are happening while discounters like Target have actually improved their fashion varieties, stealing away consumers.
For life 21 has actually also been even more vulnerable than some various other chains due to its huge footprints in significant shopping centers, which are drawing in less customers.