Despite the ongoing success of most fast fashion retailers, Forever 21 is again showing signs of weakness. According to The New York Post, industry sources have revealed that the retailer is late making payments.
Owners Don and Jin Sook Chang have denied requests from vendors and lenders to discuss the retailer’s financial status, while paying its vendors about 30 days late. This has led some lenders to withhold credit on Forever 21’s orders.
Gary Wassner, chief executive of Hilldun, a lender in the retail industry, told The Post, “We are unable to get timely financial disclosures from the company.” Hilldun recently pulled its credit lines for Forever 21, and without the company providing financial security for suppliers, it has stagnated Forever 21’s manufacturing. Wassner said that Hilldun is approving on an order-by-order basis.
This news suggests deeper difficulties at Forever 21 in light of the shuttering of two large California locations in February of this year.