David Jones is considering store closures and Forever 21 is reportedly planning to file Chapter 11. Get a healthy dose of news as we uncover the day’s top stories in e-commerce and retail.
Forever 21 Considers Bankruptcy
American retailer, Forever 21, is eyeing bankruptcy, reports say. According to Bloomberg, the fast-fashion brand is considering filing for Chapter 11, due to low cash spend and dropping profits. Earlier in 2019, Forever 21 closed its stores in China, as well as its e-commerce platform and a few stores in Taiwan and France. It also reportedly sold its headquarters for USD $166 million. Forever 21 was established in 1984 and has over 800 stores across the globe, including one in Sydney.
David Jones Closing Stores Due to Falling Sales
David Jones’ profits have dropped 42 per cent, despite the unveiling of its new Sydney flagship store. In an announcement by Woolworths Holdings, the brand made just $37 million operating profit for the year ending June 30, which is down from $64 million last year. Despite online sales going up, the department store is planning to close several stores in order to restore its earnings. According to the retailer, it will focus its attention on online sales, and will ‘reduce the number of floors’ in brick-and-mortar stores, as well as negotiate with landlords to ‘deliver a business that is viable, profitable and smaller [in terms of space]’. “We’ve got to get less stores and less space in the lower demographic areas, we’ve got to exit any marginal or undesirable leases,” said Woolworths Holdings CEO, Ian Moir.
Dutch Online Department Store Launches in France
Superwinkel, a Dutch online retailer, has launched in France. Already planned for cross-border operations, this introduction into the country was a ‘piece of the cake’. In France, the name Superwinkel will be translated to Supershop, “and just like in Germany, Supershop.fr will offer products in the categories ‘Perfume’, ‘Cosmetics’ and ‘Hair’, said a spokesperson. “It turned out to be important to do business with a local carrier. But we have also noticed that the generally chauvinistic French have no problem buying from a Dutch company.”
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