New Delhi: A day after fashion retailer Forever 21 filed for bankruptcy protection in the US, its local franchise partner, Aditya Birla Fashion and Retail Ltd, said the company will continue to operate its stores in India.
“Forever 21’s India business is run as a franchise operation by Aditya Birla Fashion and Retail Limited. The business operations of the brand in India will not be impacted in any way by its restructuring underway in the US," a company spokesperson said in a response to a query from Mint on Monday.
The American fast-fashion retailer known for its cheap and trendy apparel and accessories said it plans to shut as many as 350 stores across the world, largely in the United States and exit from some international markets in Asia and Europe as part of its restructuring. It will, however, continue to operate its stores in Latin America and Mexico. In the US, the brand could shut as many as 178 stores, according to various media reports.
“We have requested approval to close up to 178 stores across the US. The decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords," according to a statement shared by the company with Reuters. The retailer has 815 stores in 57 countries, Reuters added.
Aditya Birla Fashion and Retail Ltd (ABFRL), acquired the license for Forever21 from DLF Brands and Diana Retail in 2016. However, early last year, ABFRL, which also operates brands such as Allen Solly and Van Heusen in India, said it will downsize the brand’s stores, cut costs and will focus on opening new but smaller stores for Forever 21.
Globally, Forever 21 competes with the likes of Intidex’s Zara, and H&M but competition from online retail and existing fast fashion brands has weighed heavy on its popularity.