NEW YORK – Low-priced style chain Perpetually 21, a once-hip vacation spot for teenage consumers who fell sufferer to its personal fast enlargement and altering client tastes, has filed for Chapter 11 chapter safety.
The privately held Los Angeles-based firm introduced on Sunday that it’ll shut as much as 178 shops in the US. On the time of submitting for chapter, the corporate had roughly 800 shops worldwide, together with greater than 500 shops in the US
The corporate mentioned it’s going to give attention to maximizing the worth of its US companies and shutting sure worldwide places. Perpetually 21 plans to shut most of its places in Asia and Europe, however will proceed to function in Mexico and Latin America.
“Selections about which home shops shall be closed are nonetheless in progress pending the outcomes of ongoing discussions with landlords,” the assertion mentioned. “Nevertheless, we count on a major variety of these shops to stay open and performance as standard, and we don’t anticipate massive markets within the US.”
Perpetually 21, which has a retailer on the Vancouver Mall, joins Barneys New York and Diesel USA on a rising listing of outlets in search of chapter safety as they battle on-line rivals. Others, like Payless ShoeSource and Charlotte Russe, have closed fully.
The numbers present the disaster in conventional retail. Based on world analysis agency Coresight Analysis, US publicly traded retailers introduced this yr they’d shut 8,558 shops and open 3,446. Compared, there have been 5,844 closings and three,258 new openings in 2018 as an entire.
Coresight estimates the variety of retailer closings at 12,000 by the top of 2019.
Perpetually 21 was based in 1984 and, together with different so-called quick style chains corresponding to H&M and Zara, loved a wave of recognition amongst younger clients that started within the mid-Nineties.
Their reputation grew through the Nice Recession as consumers hunted for style bargains.
However within the final yr or so, quick style has gone out of favor. Younger clients are dropping curiosity in disposable clothes and are extra taken with shopping for environmentally pleasant merchandise. They’re additionally leaning in the direction of rental and on-line second-hand websites like Thredup, the place they see garments worn once more as a substitute of ending up in a landfill.
These developments occur whereas discounters like Goal have polished up their style ranges and steal clients.
Perpetually 21 has additionally been extra weak than another chains resulting from its massive footprints in massive malls, which magnetize fewer consumers.
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