Forever 21 stores in the UAE will remain open as chain files for bankruptcy in the US
A representative for the brand told 'The National' it would be 'business as usual'
Forever 21 stores in the UAE will remain open despite the chain filing for bankruptcy in the US.
On Sunday the fashion giant filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware, and announced plans to close most of its international stores across Asia and Europe.
However, Alecia Pulman, a spokeswoman for Forever 21, told The National that the chain’s UAE stores would not be affected.
“Forever 21’s partners in Singapore, UAE, India and the Philippines are not impacted by the US filing and it continues to be business as usual in those markets,” she said.
Forever 21 has stores in Marina Mall and Delma Mall in Abu Dhabi, and in Ibn Battuta Mall, Mall of the Emirates, The Dubai Mall, Bur Juman and Deira City Centre in Dubai.
The retailer said it received $275 million (Dh1 billion) in financing from its existing lenders with JP Morgan Chase Bank as agent, and $75m in new capital from TPG Sixth Street Partners. With these funds, Forever 21 said it intends to focus on the more profitable parts of the business.
Forever 21 became extremely popular during the 2000s, and was known for its cheaper and fast-fashion styles. However, like many brick-and-mortar retailers, it has succumbed to the onslaught of e-commerce.
Founded in 1984, the retailer has 815 stores in 57 countries. Last week, it said it would exit Japan, closing all 14 stores there at the end of October.
Updated: October 1, 2019 11:19 AM