The Changs must have been like Bernie Madoff. Where and how did they get the monies to fund their foolish expansions. They must have sold lots of bridges to folks, maybe in God's name?
10
The Chang's should have gotten out before going beyond their limited capabilities. They got to where they were initially successful with sheer luck and by hard work. With no business acumen, their luck ran out. Also sense that there was also some greed involved.....
7
perhaps this family should have done a presentation on Shark Tank. And got expert advice and why they are not a good business to invest in...
5
Anyone remember "5-7-9" girls clothing stores in USA? and then 45percent of American women - girls are obese and Walmart and McDs keeps making a profit in junk food. Priorities and standards is something Americans need to self invest in.
3
Isn't there a saying on the lines of: "Grandpa builds a business, Dad expands the business, Son spends all the money, Grandson closes business down"?
12
They are very typically korean. Look at all the korean conglomerates. Should’ve take it public and run with the money. Now they are losing more money than ever
17
I am way past 21 to ever step into that store as I just turned 70.
But I think Chang need to hire that crook at WeWork where "we all worked, while he partied and looted."
He will show them how to make this fashion business into a Tech start up.
The Silly Valley banksters will throw more money at them than they would know what to do.
And when the end comes - they will walk away with multi multi million dollars of consulting and a huge ransom just to stay away.
Mr. And Mr. Chang - he is available and waiting for your phone call.
9
I am way past 21 to ever step into that store as I just turned 70.
But I think Chang need to hire that crook at WeWork where "we all worked, while he partied and looted."
He will show them how to make this fashion business into a Tech start up.
The Silly Valley banksters will throw more money at them than they would know what to do.
And when the end comes - they will walk away with multi multi million dollars of consulting and a huge ransom just to stay away.
Mr. And Mr. Chang - he is available and waiting for your phone call.
4
A colleague of mine worked there in 2010 I think. She mentioned that the company was very much managed as if it was located in South Korea, culturally speaking. Management were mainly South Koreans that were extremely close to the Changs but with little or zero management skills. Regular employees were told to not look into the eyes of upper management. Employees were commonly yelled at, bullied and intimidated by their South Korean bosses. Every new hire had to sign literally 200-300 page agreements making it impossible to sue them, preventing even basic employee working rights to be applied. Employee turn around has been high. Terrible company to work for with horrible management. Everyone who has worked there saw this coming.
42
Their Christian faith didn't keep them from building their business with sweatshop labor. I hope they go under.
58
@DR you hope an honestly built mom & pop "go under"? How awful! Isn't it obvious to you in the article they might recognize they made some mistakes? I Revere this company, and the hard work of it's founders. I for one am rooting for their success.
8
A smarter person would have sold the company at its peak.
15
This is the kind of enterprise that brings cheap fashion to the masses. No doubt those producing these clothes get paid very little and the production of these items may pollute their country. Once here, tons of unwanted clothing of this type will overwhelm Goodwill and other stores who, because of the sheer value of this junk clothing, will have to pay out of pocket to get rid of the stuff. Forget about sending our used junk clothing to Africa. They have wisened up and no longer want our junk.
Those who buy these cheap clothes are part of what is wrong with this planet.
49
@Don Juan You hit the nail on its' head. Take responsibility, consumers.YOU are the problem. It's simple supply and demand economics. Oh, that's right, we don't teach cause and effect anymore in school (at least, not to the 'lower' classes).
6
@Don Juan how cynical. I buy Forever 21 because I like their clothing and I can afford it. I am glad they exist and I hope they continue to succeed and thrive.
4
@Don Juan I agree! There is a reason these clothes are so cheap...someone else is paying for it (typically underpaid laborers) before those items ever reach the stores.
The cheap prices, poor quality, and frantic advertising of new styles leads to way too much textile waste.
22
"And the Chang family will be listening to new voices. Its board of directors will grow from three members ...to six, including Forever 21’s former head of real estate"
What? Wasn't it bad real estate decisions that got them in trouble in the first place?
"But Forever 21 made its biggest mistakes in real estate. In the years before and after the recession, the company expanded aggressively and decided to open huge flagship stores"
So they're expanding their board of directors to include the guy who oversaw the bad mall leases they signed which are now driving the company into bankruptcy. This does not sound like a new voice at all. It sounds like they're building a bigger echo chamber.
RstJ
17
As a 23 year old, it’s ironic to see Forever 21 go bankrupt because they fell out of fashion years ago. They mass produce and rip off designers with even worse designs that say “Tacos are my life” and other things that fashion forward Americans would not pick up and wear.
12
Chang no doubt read and followed Trump's 'Art of the Deal'.
Who needs experience and expertise? God will help!
I empathize with the thousands of Forever 21's employees who had faith in their corporate leadership and now have lost their jobs.
11
Clearly they did not understand the threat of Amazon and the threat from Walmart, and Target that are aggressively pricing merchandise to compete with Amazon. Malls are no longer popular, and they should of taken on partners to diversify. No longer possible, but the malls have empty stores, and most cities have empty stores .
7
@Ralph Petrillo should HAVE. Should have taken on... Grammar and spelling, it's the NYT. Anyways, I would never buy clothing from Walmart, and certainly never Amazon! I have bought from Target, but their clothing is so obviously cheap. I have substantial sweaters and more from Forever21 after a couple of years and seasonally, are in great shape. I am going to defend this company for selfish reasons. I love their fashions and clothing. They are an actual clothing store. The last of their kind??? How very sad!!! Walmart isn't a clothing store, or Target, or Amazon! I defy you to buy a toaster at any of those! What is wrong with these respondents??? How can you not admire ingenuity and risk-taking?
4
@lillybeth0 Not if it comes at the expenses of their work force the environment and the exploitation of their manufacturing Partners overseas- I doubt one can build a multi billion empire onte bases of ingenuity ; sadly their family will be ok -the same cannot be said for all the workers that will be laid off and the manufacturers that will see pennies on the dollar .
10
Everyone here is celebrating the fall of Forever 21. The reliance on fast fashion and the Changs' Christian beliefs make them an easy target. However, who among us doesn't wish they had the bold ideas and self-made success of Mr. Chang? Who wouldn't want total control of their enterprise (even to a fault like Mr Chang)?
Those celebrating are envious. Their personal shortcomings prevented them from taking risks (and enjoying the rewards) like Mr Chang, so they celebrate his downfall. They're probably stuck in a job they hate with no personal control/fulfillment. I doubt Mr Chang would want to trade places.
"It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs ..." - Teddy Roosevelt
35
@Andy Deckman I completely agree with you. I am disgusted by the schaudenfraud found I the comments. Who celebrates someone, or a company, dealing with tough times? Appalling! This family should be applauded, for their vision, tenacity, work ethic, vigor, vision, and contribution to commerce. I love Forever21 personally, but even if I didn't, I wouldn't take glee in tearing them down, or piling on. I don't even feel like I'm reading the NYT reading these crass comments. Mr. and Mrs. Chang, please don't be despaired. You have far more fans than detractors.
13
@lillybeth0 So we should celebrate unbridled hubris and incompetency?
15
@Andy Deckman - I don't envy anyone who builds their fortune on the suffering of others. Their use of sweatshop labor is shameful.
25
Everyone here is celebrating the fall of Forever 21. The reliance on fast fashion and the Changs' Christian beliefs make them an easy target. However, who among us doesn't wish they had the bold ideas and self-made success of Mr. Chang? Who wouldn't want total control of their enterprise (even to a fault like Mr Chang)?
Those celebrating are envious. Their personal shortcomings prevented them from taking risks (and enjoying the rewards) like Mr Chang, so they celebrate his downfall. They're probably stuck in a job they hate with no personal control/fulfillment. I doubt Mr Chang would want to trade places.
"It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs ..." - Teddy Roosevelt
7
We should be happy they chose to go into business instead of politics.
18
Mismanage your good fortune and when things go wrong, run to bankruptcy court.
16
Amazing that it got as far as it did...
7
@Imperato they are still very much in business, and I will continue to shop them as I have for years. I love this store.
3
"One employee said the chain moved into Germany without realizing stores in the country typically closed on Sundays."
Pretty much all you need to know.
36
Hubris, greed and incompetence. The result is not unexpected.
21
Unbridled hubris and the old 'God is on our side' thing.
19
In the 90’s they came to my brother’s prominent LA law firm. A team was assembled to handle them. The first thing they did was demand “no Koreans or Korean speaking attorneys”. They didn’t want anyone to understand what they were saying amongst themselves.
72
They are devout “Christians”.
Riiight....The photo of the dad standing between his two daughters in revealing clothes against a back drop of slick gold while trying to addict teenagers to a never ending supply of cheap clothes made by a low wage underclass seems like the modern hucksterism that has overtaken a whole lot of Christianity these days.
Hopefully it will soon be good riddance to this vulgar outfit.
80
Guess you'd prefer crosses?
4
Actually they're the embodiment of what many South Korean Christians stand for...a country where churches are monetized and run as businesses for profit...
8
Executive hubris will only get you so far.
4
Just here to say fast fashion needs to die, and I'm shocked by any comment saying it will be missed or that someone liked the brand. I'd expect NYT readers to be more informed than that.
29
i don't know these people, but it seems that once again there is a belief that "trust" in "God" guarantees "success," when really what "God" would teach you is humility.
28
John 3:16?! I wonder what Jesus would think of the way chains like Forever 21 treat the workers who make their clothes. What hypocrites. Good luck passing through that eye of the needle...
65
The sad part is that they really believe the "Christian faith" entitled them to run their business the way they did, and that advertising it somehow justified it.
6
"Mr. Chang considered 21 to be 'the most enviable age....'”
Well, Mr. Chang, you alienated everyone who doesn't agree. :)
10
@Jim I'm 55 and love their clothes. They suit me fine, and I don't feel alienated buying them. Jim. Jim? I am so sorry to hear that you feel alienated. Maybe you should shop elsewhere.
3
That is a truly objectionable photo, posing both female “executives” in that cheesy way. And the man in the middle is their father? Yuck.
21
@Passion for Peaches oh, for God's sake. It's a family business. This is a great photograph. It's a dad and his two young, 20 something daughters. Only someone lascivious would read beyond that.
4
As a contrast to this mess check out yesterdays amazing profile of the Nordstrom family and how they thoughtfully and purposely built their business over the past century.
https://www.nytimes.com/2019/10/23/style/nordstrom-family-department-stores.html
13
They may have been Forever 21 but but are now Chapter 11.
16
“You can live in your self-created bubble for a lot longer, but then the bubble pops.”
Chronic hubris, insularity, personnel management failures, poor judgment---> bankruptcy?
How Trumpian.
12
In addition to the management failures as the company grew, it sounds like Mr. Chang’s drive to expand to both large and numerous physical locations was fueled by a deep-seated and unrecognized psychological need.
10
Interesting article. I’ve always thought this business took a huge risk focusing on the fickle age group they did (mostly teens, not the “ideal age” 21 year old women). People who buy throwaway fashion are not brand loyal. You can whip up demand for an item on social media, and it might sell out, but if you haven’t taken the time to build up a reputation for value, these flash sale items will always be a one time thing. Compare this with Target, another retailer for the cost conscious. When Target releases their (limited inventory) designer lines of clothing and home goods, many sell out on the first day. The store has a rabidly loyal fan base (and some who buy to resell on EBay). But shoppers go to Forever 21 to buy in bulk. You don’t keep those customers once they start earning enough money to buy elsewhere.
They also blew it in the K Beauty front. Terrible name choice. Korean skincare products have been huge for a few years now, but the fad seems to have plateaued.
The big trend now in fashion for younger people is sustainability. That’s why resale business like ThreadUP and Poshmark are doing well. Buy used stuff. Reduce, reuse and recycle. Buying a camisole for $1.99, knowing that it won’t last more than a few washings, and that it was made using unethical labor and ecological practices? Not happening among the younger women I know.
59
Since my other comment addressing the photo at the top of the article did not post, I want to state again that I find the pose of the two daughters — executives In the company — objectionable. I’m surprised they agreed to it.
7
@Passion for Peaches hilarious. Vintage stores have been around for decades. They were the original "reduce, reuse and recycle." Check 'em out. There's still plentiful. And they include Goodwill, Salvation Army, and your local do-gooders.
5
It is very rare for someone to possess the same skillset to create a company from scratch and to manage a multibillion business. This has happened with many companies.
Also, Forever 21's repeated theft of other designs and artists was the canary in the mine. This is not a viable long term business strategy.
What they built was amazing though, and should be appreciated. I know I couldn't open 1 retail store successfully. They should be proud of what they built.
23
This happens a lot in businesses with founder CEO / owners. The very attributes that drove success can also lead to trouble
14
I never knew much about this business - what they built is pretty impressive. The transition from the mall to online is happening to everyone and even some of the biggest retailers have been caught off guard - they have had to close stores while online-only retailers are strategically opening stores. As to this store, I never shopped there because I always found the name offensive. I wouldn't want to be forever 21 - forever 38 maybe. Life is way better later on.
20
Trump the master of successful business dealings, has filed bankruptcy four times. In Trump's business model, Forever 21 is on track and doing well.
I like Forever 21. I hope they can reorganize and continue to prosper. Anyone in business can and will tell you it's tough to survive. The biggest of retail giants have fallen over the years and many of the brand names we currently know and love, are teetering on extinction. The world is changing fast and it's extremely difficult to stay relevant.
6
@Valerie - Really? You like cheap, disposable clothing made in sweat shops?
4
Forever 21 has been producing throwaway fashion made of pure garbage materials for a very long time. The store was designed to fulfill a teen's shopping impulse. I'm quite sure that everything manufactured by this company has been made by exploited destitute workers, and destined for a landfill where it will take over 500 years to decompose or become one of the Anthropocene's sediment layers. Sadly, celebrating billionaires is just a sign of the times.
156
@aksantacruz This is a business that should die forever, 21 times. Exploitive and throw away fashion in landfills, that's all it is as you say.
14
@aksantacruz Their clothing is so cheap it will decompose in about two years except for the metal and plastic.
As an astute long time avoider of fashion and all clothing items fashionable, I'm struck by the strident business analyses of this fashion marketers flaws and failures.
Not that I disagree with what's being said, I think the writers wrote a fine article, just that I find it unusual to expect some kind of predictability in fashion sales and marketing.
Typically, for me, my experience tends away from fashion and what is in fashion towards quality. That tends to get repeat customers, quality, while fashion just draws customers in.
What do the writers have to say about Forever 21's quality?
11
@angry veteran You are talking about the difference between fashion and style. This retailer offers only fashion, and its teenage customers only want fashion, not style. Fashion changes quickly, with the zeitgeist; style is personal and lasts far longer.
10
It's unfortunate, but expertise is increasingly undervalued in most sectors of today's society.
54
@K That's easy to say in hindsight but when a company had been doing extremely well it is difficult for it's founders to say let's change what have been making us successful for the last 20 years. Expertise differ and it's the timing of which expertise to use that is key (and luck factored in).
10
I have founded a small business (not retail) that has grown slowly but steadily but is still quite small. Adam Neumann At WeWork and this family grew their businesses irresponsibly but incredibly fast. Neumann was bought out for over $1 billion and I am sure that this family squirreled away a lot as well. If money were the only object (we know it isn't) but if it were, it seems like one could make the decision to just go crazy and grow at all costs, flame out, and walk away. Increasingly I see this happening. The alternative is that you spend years growing a business and either a: suddenly, your landlord jacks up your rent leaving you with no business to sell or b: you are eventually overrun by a change on technology that makes your business obsolete or c: the work that you perform can be done for a third of the cost offshore either forcing you out or forcing you to reduce your pricing to the point that it no longer pays to continue operating. While the American dream is alive, does it not appear that the strategy of a short term flame out or sale is more attractive? And if so, is that a problem that ultimately has impacted not only how business is done, but also has brought us to the political situation we are in? And this is in a time of long term economic expansion. What will happen when we experience the inevitable downturn?
67
@Mark Hackenstern Forever21 will do great in yet another economic downturn, which they've survived beautifully in the past. They will be all people can afford, and come to love and appreciate.
1
Normally this kind of thing happens when small companies like Barneys or Fairway run into bankers that want expansion and growth at any price. Then the enterprise fails as running one store is not same as 20 or 200. But they seemed to do this on there own!
24
This seems to be a trend in privately/family owned companies (not all, but sounds like a familiar tune). Lots of nepitisim leads to poor planning or poorly informed decision-making. This rings true in start-up culture as well. It makes sense early on for a company to get off their feet to have leaders you favor and trust, but as a company grows, so does its need for industry-experienced minds. Seems this way of business is now being forced on F21.
40
From "Mom and Pops," to massive ventures like Forever 21, the degree to which family-run operations fail is amazing. They ALL think they are the smartest people in the room -- but they rarely are.
88
@Clyde Most businesses fail, not sure if family owned ones are higher than the average.
6