Forever 21 is reportedly preparing to file for bankruptcy — and the husband and wife duo who founded
Forever 21 cofounders Jin Sook and Do Won Chang are no longer billionaires, according to Forbes estimates.
The fast-fashion retailer is considering filing for bankruptcy after a failed attempt to restructure its debt, CNBC reports.
Each half of the married couple now has a net worth of $800 million, according to Forbes.
Business Insider's Bethany Biron previously reported that the teen-focused retailer was being outperformed by other fast-fashion retailers, including H&M.
The net worths of Forever 21 cofounders Jin Sook and Do Won Chang have plunged alongside the store's sales. They are no longer billionaires, Forbes reported on July 3.
At the company's peak in 2015, Jin Sook and Do Won Chang had a combined net worth of $5.9 billion, according to Forbes. Their combined fortune has fallen to $1.6 billion — or $800 million each — as Forever 21 considers filing for bankruptcy after a failed attempt to restructure its debt, CNBC reports.
The married couple founded Forever 21 in Los Angeles in 1984 after emigrating from South Korea three years prior. Their first location, originally called Fashion 21, was 900 square feet and stocked merchandise the Changs purchased at wholesale close-out sales, according to Forbes.
In June, Business Insider's Bethany Biron visited a Forever 21 store and its fast-fashion rival H&M in New York's Westfield World Trade Center mall and found that H&M's well-lit and organized store drew more shoppers than Forever 21's sparsely stocked subterranean location.
Forever 21 is privately held and does not release its sales numbers, but the fast-fashion giant has recently closed stores in major markets, including London and China, Business Insider previously reported. Forever 21 stores in the US have also begun to shrink in the US, Forbes reported, as several two-story mall locations gave their second floor to other stores, including Dave & Buster's and Ulta Beauty.
Courtesy : Business Insider