On Sep. 29, 2019. Forever 21 filed for bankruptcy in the United States.

But the move will not affect operations at Forever 21's remaining Singapore outlet.

Not affected by bankruptcy

The fast fashion retailer filed for Chapter 11 bankruptcy protection, which involves a “re-organisation of a debtor’s business affairs, debts, and assets”.

Executive vice president of Forever 21, Linda Chang, said that it was an “important and necessary step to secure the future” of the company.

CNN reported that Forever 21 will close down as many as 178 outlets in the U.S. alone -- and between 300 and 350 stores worldwide -- and plans to "exit" most of its international locations in Asia and Europe.

But Singaporeans can still visit the Forever 21 outlet in Singapore located at 313@Somerset, as it will not be one of those shutting down.

Today reported that on Sep. 30, Forever 21 gave a brief statement saying:

"Forever 21’s partners in Singapore, United Arab Emirates, India and the Philippines are not impacted by the U.S. filing and it continues to be business as usual in those markets."

Staff members told Today that the outlet has no plans to cease operations.

Bankruptcy protection vs bankruptcy

In the U.S., corporations that apply for bankruptcy protection can file a reorganisation plan and repay its debts over time, allowing the company to continue trading while sorting out its financial difficulties.

This means that even the affected Forever 21 stores will continue to be open for the time being.

This is different from filing for bankruptcy (Chapter 7), which liquidates much of the debtor’s property with the proceeds going towards the repayment of debts.

So no rush for shoppers.

Which also means there might not be fire sales.

Top photo from The Somerset Collection.