On Sunday Forever 21 announced that they were filling for bankruptcy.

Forever 21 is well know for their fast fashion and relatively low prices clothes. Many of us college students enter Forever 21 and RUN for their clearance rake.

Forever 21 was founded in the 1980s after other fast fashion retailers such as H&M and Zara.

Unfortunately, this news does not come as a surprise as consumer preferences have changed.

• More people are opting to purchase goods online
• Rental prices at malls continue to increase

Forever 21, a private, family-held company announced that it will halt operations in 40 countries, including Canada and Japan. In the United States they will shut down 178 stores, making a total of over 350 store closes.

“We went from seven countries to 47 countries within a less-than-six-year time frame and with that came a lot of complexity,” Ms. Chang said. At the same time, she said, “the retail industry is obviously changing — there has been a softening of mall traffic and sales are shifting more to online.”

Mr Chang (Forever 21 CEO)

Good news

Forever 21 is NOT dissapearing as they will continue to operate online.

The company also plans to continue selling merchandise under $50.