- Vivian Hendriksz |
London - Forever 21 seems to have fallen out of favor as the fast-fashion retailer continues to struggle amidst weakening sales. Forever 21 is set to close its only store in Ireland following poor trading conditions, as it downsizes its UK store estate.
The US-retailer will be closing its only store in Dublin, Ireland in addition to its flagship store in Amsterdam, the Netherlands. In addition, Forever 21 will also be shutting down its downtown store in Vancouver, Canada, due to flagging sales. Recently filed accounts for Forever 21 Fashion Ireland Ltd indicate the retailer has set aside close to 11 million euros for the lease exit and redundancy costs, which combined with the 4.5 million euro loss recorded in the financial year which ended February 2016 has resulted in a 44 million euro loss.
The fast-fashion retailer first opened its store in Dublin in 2010, and reportedly invested more than 10 million euros in renovating the store. Since then, Forever 21 has expanded to other European markets, such as Germany, Spain, Poland and France. However, the US retailer has struggled in a number of markets, including Britain and may be poised to exit a number of its international markets.