Forever 21 exits Colombian market as income drops

US fast fashion retailer Forever 21 is believed to be preparing to shutter in the Colombian market 12 years after its initial entry.

The news follows the closure of the retailer’s flagship store in Bogotá, according to local news outlet elColombiano, which said that Forever 21’s additional three stores in Medellín and Bucaramanga are to succumb to the same fate.

The media outlet added that the company, which is incorporated as Alameda Colombia SAS, had an operating income of 26.223 million dollars in 2023, with a drop of 20.15 percent compared to the year prior.

It shows signs of a possible continuation of financial struggles at Forever 21, which had filed for Chapter 11 bankruptcy protection in the US in 2019, resulting in the closure of stores across North America, Europe and Asia.

Authentic Brands Group eventually took over the retailer in early 2020, and later announced intentions to expand in the Latin American region through a new partnership with AR Retail.

At the time, the move was dubbed the beginning of a “next phase of growth” for Forever 21, with media stating that there were plans to open 26 stores across nine countries.

The exit from Colombia could also signal a shift of focus to more profitable markets for the retailer, however, with Forever 21 most recently securing a long-term deal with Shein to supply co-branded products to the Chinese e-commerce giant, in addition to other notable strategies.