Fashion retailer Forever 21 has filed for Chapter 11 bankruptcy protection within the US.
The firm stated it plans to “exit most worldwide areas in Asia and Europe” however would proceed to function in Mexico and Latin America.
It expects to shut as much as 350 shops worldwide, a spokesperson stated, together with as many as 178 US shops.
Forever 21 sells cheap, stylish garments and equipment, and competes in opposition to manufacturers akin to Zara and H&M.
But some analysts say the retailer, based in 1984, has misplaced its approach over the previous 5 years, and fallen out of favour with younger US customers wanting for comparatively low-cost clothes.
The firm has additionally, like many conventional retailers, struggled in opposition to rising competitors from on-line rivals.
Chapter 11 protection postpones a US firm’s obligations to its collectors, giving it time to reorganise its money owed or promote components of the enterprise.
A Forever 21 spokesperson stated the retailer anticipated to have between 450 and 500 shops globally after this course of, down from its present complete of about 800.