Nearly a decade ago, before there were Instagram influencers, Forever 21 helped teens dress like their favorite celebrities, for cheap.

It was not a new idea: teenage girls have always wanted to dress like their idols. However, the breakneck speed at which Forever 21 was able to make those trends available and affordable was.

The company's specialty became fast fashion, and the chain aggressively grew to become a staple in American malls, opening hundreds of stores and redefining what it meant to be the anchor of a traditional mall.

But some analysts, such as Marshal Cohen of the NPD Group, warned at the time that because Forever 21's "coolness factor" could eventually wear off, the company had to "be careful not to grow too big."

Apparently it got too big.

Forever 21 is now said to be in financial trouble and developing restructuring plans in hopes of avoiding a possible sale or bankruptcy. With nearly 800 stores worldwide and more than $3 billion in annual sales, Forever 21 - a private family business that started with a single store in the Highland Park neighborhood of Los Angeles in 1984 - is coming under pressure on multiple fronts. .

The chain reportedly needs to shore up its finances, just as its popularity factor is declining and young consumers continue to migrate to other retailers, especially online sellers.

Forever 21's own missteps haven't helped, including its move to sell clothing and other merchandise to a wide variety of buyers — a broadening focus that has diminished its reputation among younger shoppers, analysts said.

"They've lost sight of what got them there," said Roger Beahm, executive director of Wake Forest University's Center for Retail Innovation. "They've tried to make up for it by expanding the appeal, and I think they've ended up diluting what they stood for."

The resulting irony is that Forever 21, which once benefited from the demise of traditional retailers like Mervyn's and Gottschalks by taking over their stores, is now threatening to become the next major trouble spot for mall operators who were already in trouble.

Forever 21 is not alone. H&M, a Stockholm-based fast-fashion giant, is also in trouble. H&M's profits have fallen, and the company's share price has halved in the past four years, as teens and others spend more online at sites like Fashion Nova, Asos, Missguided and Lulus. , as well as with Amazon, the leading e-commerce player, and with clothing resellers such as Poshmark and Depop.

One such consumer is college student Dawn Trevino, 19, who said during a recent visit to the Third Street Promenade in Santa Monica that she now rarely shops at Forever 21 because her styles feel "old-fashioned."

"I want something unique, and I feel like they don't have it anymore," Trevino said.

Even Forever 21 staples let her down, she said. She often finds a hoodie or shirt that she likes, but when she turns it over she notices that it has phrases like “I love tacos” or “I hate people”, and she then puts them back on the shelf. her site.

Forever 21 - owned by couple Do Won Chang and Jin Sook Chang, who emigrated from South Korea before founding the company - has hired restructuring advisers to explore the chain's options, including renegotiating leases. , obtaining a new loan or reviewing the company's operations, Bloomberg and the Wall Street Journal recently reported.

Forever 21 declined to comment for this article and, as a private entity, its financial information, including the amount of debt it owes, is not publicly available.

The company has reportedly been downsizing some of its huge stores, in some cases giving away parts of the outlets to other retailers. According to its website, the average Forever 21 store is 38,000 square feet.

Its locations include a 94,000-square-foot store in San Bernardino, a 127,000-square-foot store in Las Vegas and a 90,000-square-foot, four-story emporium in New York's Times Square.

The retailer sold its Los Angeles building for $166 million in December.

In addition, Forever 21 officials asked two of the firm's largest owners, mall operators Simon Property Group Inc. and Brookfield Property Partners, about various options that included a sale, Bloomberg reported. Forever 21 called that report "categorically wrong."

Forever 21 is one of the largest tenants at Simon's and Brookfield, according to recent securities filings for those firms. And it wouldn't be the first time landlords have bailed out a tenant. In 2016, Simon and General Growth Properties - which has since been acquired by Brookfield - teamed up to buy Aeropostale, a teen retailer that had filed for bankruptcy.

Forever 21 became a fast fashion pioneer selling a rapidly changing assortment of dresses, T-shirts, jeans and other clothing and accessories for young women, typically for less than $20 each.

It was initially named Fashion 21, which was changed because "our customers are people in their 20s and 30s," Do Won Chang told CNN through a translator in 2012. "The adults wanted to be 21 again, and the young people wanted to be 21 forever.”

Forever 21 had approximately 450 locations in 2009, and its "cheap chic" assortment was especially popular after the severe recession of 2008-09. Hundreds of shoppers lined up for the grand openings of its new stores.

The firm continued to open more outlets, and by 2015, the Changs had a combined net worth of $5.9 billion, but that fortune has since shrunk to $1.6 billion due to Forever 21's troubles and declining sales. valuations among similar retailers, Forbes estimated.

As it grew, Forever 21 expanded into men's, children's, maternity and plus-size clothing and cosmetics, among other items. But that made the chain look too much like the failed brick-and-mortar stores it replaced, said Ilse Metchek, president of the trade group California Fashion Assn.

Metchek said teens who shop fast fashion often have a specific item or trend in mind, and when they go shopping, "they want to go in, see it, buy it and get out of there," he said. one market by department".

As shopping moves online, the decline in traditional mall traffic exacerbates Forever 21's problems, said Ronald Friedman, co-director of Marcum's retail store, an accounting and advisory firm.

Forever 21 has invested heavily in conventional malls, but "not all of them are going to be good stores," Friedman said. "If you have stores that lose a lot of money, the good ones can't make up for all the bad ones."

The network still has a very wide audience; with more than 16 million followers on Instagram. But while Forever 21 once helped set trends for millennials, many in the subsequent Gen Z population are apparently looking elsewhere for fashion inspiration, Beahm said.

“A brand popular with millennials might not be popular with Gen Z,” and should evolve to stay ahead of trends, Beahm noted. "If you follow them and chase them, you may find yourself in trouble."

Metchek believes Fashion Nova, a Los Angeles-based fast fashion retailer known for its body-hugging silhouettes, "is the new Forever 21."

Fashion Nova relies heavily on influencer marketing: It partners with celebrities, bloggers and others who have large online followings and can show off their clothes, Metchek said, and it meets its buyers: young women who want to emulate the family's aesthetic. Kardashian. Meanwhile, she said, “Forever 21 is still trying to attract everyone.”

Forever 21 hopes to avoid the fate of clothing retailers that have filed for bankruptcy in recent years, including not only Aeropostale but also American Apparel, Rue21, Nasty Gal, BCBG Max Azria and Wet Seal.

The outlook is tough for clothing chains. Abercrombie & Fitch plans to close 40 of its stores this year. Gap Inc. is cutting 230 stores from its namesake brand and splitting into two public companies, which has led to the creation of its better-performing Old Navy brand.

But there is still room for physical stores. Some shoppers like to visit malls when they want to try on clothes and make returns, or as a social activity.

As Trevino and her friend, 18-year-old Marissa Peña, walked the Third Street Promenade looking for sales on a recent weekday, they said they looked online for clothes but could more easily find the right sizes in person. Photos of tall, skinny models leave them unsure of how the garments will look on their own 5-foot bodies.

Peña showed off a pair of white sneakers that she had just bought at Steve Madden's store. Her shoe size is average, and when shoes go on sale online, her size often sells out quickly, but the right pair might be hiding in plain sight on a store shelf, she said.

Her friends are still open to visiting Forever 21. That day, Peña was even wearing a pair of white sailor shorts that she had bought at one of her stores this summer, when she found they fit. But even before they turn 21, they feel that the brand no longer offers what they are looking for.

“It's so hard because I like Forever 21 sometimes,” Peña said. "But at this age, when you go to practice, you need nicer clothes and one that lasts, so you can't shop at Forever 21 anymore."

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