Forever 21 Files For Bankruptcy Protection

Forever 21 has filed for bankruptcy protection in Canada and plans to restructure globally with $350 million in financing. The company aims to emerge stronger and more competitive, closing 178 US stores and up to 350 worldwide. Despite challenges in the fast fashion industry, Forever 21 reassures customers that stores will operate as usual, and gift cards, returns, and exchanges will be honored.

What is the primary reason for Forever 21's decision to close several stores?

• To expand their online presence

• To merge with another retailer

• To begin a global restructuring process

• To focus on luxury fashion

How much financing has Forever 21 secured to aid its restructuring?

• $350 million

• $100 million

• $500 million

• $200 million

What is Forever 21's outlook after restructuring?

• They plan to exit the fashion industry

• They aim to emerge as a stronger and more competitive enterprise

• They expect to become a smaller company

• They intend to focus solely on the US market

What challenge is mentioned as affecting fast fashion retailers like Forever 21?

• Lack of interest in fashion trends

• Increased competition from luxury brands

• Rising costs of raw materials

• Shift in consumer focus from mall visits to online shopping

What assurance does Forever 21 give to its customers during the restructuring?

• Prices will increase significantly

• Stores will continue to operate as usual

• Gift cards and returns will not be honored

• Stores will close temporarily