Diario Extra – Forever 21 would declare bankruptcy

ANDU.S. (AFP) – The rumor that the Forever 21 clothing store, with more than 700 stores worldwide, would declare bankruptcy next Sunday was uncovered by the US media Wall Street Journal, although the company claims it is not true.

If it becomes effective, the company could get rid of stores that are not profitable, that is, at least 700 stores would stop operating, according to the media.

Everything indicates that Forever would not have followed certain principles of “retail” in a highly dynamic sector, where risks must be taken. This was explained by Roger Beahm, executive director of the Center for Retail Innovation at Wake Forest University, in statements to Yahoo Finance.

"There are key issues that a retailer needs to do well: maintain a unique type of product, continue to evolve and maintain cutting-edge thinking," said Beahm.

INEXACT REPORTS

The company, after knowing this information, decided to clarify the situation in a press release and explained that the idea of ​​declaring bankruptcy is not raised.

“The reports are inaccurate; Forever 21 does not plan to file bankruptcy on Sunday, ”reads the text.

"Our stores are open and it is our intention to continue operating the vast majority of points of sale in the United States, as well as in the international market," USA Today published.

Forever 21 was founded in 1984 and operates more than 815 stores in 57 countries.

DIARIO EXTRA tried to speak with the representatives in Costa Rica, however they did not answer our questions.