Forever 21 seeks rent concessions as fast-fashion brand faces financial woes
Forever 21 is asking landlords for a break on rent as the legacy fast-fashion player’s sales decline and it struggles to keep up with savvier competitors, CNBC has learned.
Forever 21 is asking landlords for a break on rent as the legacy fast-fashion player’s sales decline and it struggles to keep up with savvier competitors, CNBC has learned.
The retailer, which has more than 380 stores in the U.S., has asked some landlords to cut its rent by as much as 50%, people familiar with the matter told CNBC.
While the company is facing financial difficulties, it has yet to hire advisors and isn’t considering a second bankruptcy protection filing, the people said. It’s working to restructure its many leases so it can cut costs, they said.
Forever 21 faces a range of issues that have long plagued its business. It operates in the increasingly saturated fast-fashion market, the people said. They also added that the retailer struggles to manage inventory and understand and respond to its consumers.
The retailer’s struggles come after it filed for bankruptcy protection in 2019 and was later bought by a consortium including brand management company Authentic Brands Group and landlords Simon Property Group and Brookfield Property Partners.
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