Strut

Forever 21 may declare bankruptcy — and the end of fast fashion

Snacks / Friday, August 30, 2019

Because you need that fall transitional cropped sweater ASAP... "fast fashion" became a thing: it's the art of catching new trends and pumping out styles quick with efficient supply chains — and the big 3 have been H&M, Zara, and Forever 21. Now Forever 21 and its satin belted 800 stores are reportedly filing for bankruptcy.

Travel back to 1984... Mock turtlenecks were in and a South Korean immigrant couple with $11K founded a store in LA committed to chambray, bomber jackets, and anything that had staying potential (fyi, Forever 21 is still private — you can't buy the stock). That fast fashion trend it rode hit a peak this decade, but now the leaders are feeling pains. Fast.

  • H&M lost half its market value in just the last 5 years — and it's stuck with $4.3B in unsold clothes, some of which it burns to get rid of.
  • Zara just missed full-year earnings expectations.
  • Fast fashion has now faced the f-word: "Fad" — it's become one.

Fast Fashion's losing to its opposite... sustainable fashion. Sure, Forever 21 is also dependent on physical stores and malls that are struggling — but overall, the used fashion industry is now suddenly expected to pass the fast fashion one within a decade. Here's who's out-dressing fast fashion:

  • Rent the Runway literally rents you daily clothes now (not just fancy wedding weekend gowns).
  • Urban Outfitters launched its own rental copycat look.
  • Stitch Fix sends monthly boxes and uses AI to better tell what you'll actually like (and not waste).
  • TheRealReal IPO'd this year committed to reusing and reselling that authentic Gucci getup so it doesn't end up in a landfill.

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