Forever 21 To Close All Stores In Japan By Late October

(Photo Credit: TokyoFashion.com)

Forever 21 plans on closing all Japan locations

All 14 Japanese branches of fast fashion retailer Forever 21 Inc. and its online shop will be closing by the end of October amid growing competition with other online apparel retailers. The company did not explain the reason for withdrawing from the Japanese market, but it is most likely due to the Japanese market and the retailer’s sluggish sales in recent years.

The announcement came on Wednesday and follows U.S. media reports back in August that the Los Angeles-based company has been considering filing for Chapter 11 bankruptcy protection.

Forever 21 opened its first outlet in Japan in the Harajuku district in Tokyo in 2009. However, that outlet closed in 2017 and currently operates stores in Yokohama, Osaka and other major cities across the country.

On Monday, the chain closed its last outlet in Hong Kong, and back in March, Forever 21 closed its stores in Taiwan after “years of losses.”

Back in the U.S. Forever 21 considered filing for bankruptcy protection because the spread of online retailers has hurt the company’s ability to pull in customers and weighed on its financial health.

That’s not the only hot water Forever 21 is in; Ariana Grande sued the fashion retailer, claiming that the company sought to trick customers into thinking the pop singer endorsed the brand. The retailer posted photos of her on its social media accounts and used a model that looked “strikingly similar” to her.

Additionally, Forever 21 has been sued by Adidas for selling garments and accessories bearing allegedly infringing striped designs.