Forever21 exits the Colombian market

Forever21 is exiting the Colombian market after 12 years of continuous presence. The chain is beginning its departure by closing its flagship store in Bogotá, located in one of Colombia’s most sought-after commercial areas, the T Zone on 82nd Street in the northern part of the city.

The closure of the large-format store was accompanied by a liquidation sale offering discounts of up to 70%. To date, Forever21 still has two more stores in the country, one in Bucaramanga and another in Medellín, which will also be closing.

The fast fashion brand opened its first store in Colombia in 2012, in partnership with the Chilean group Ripley. Alameda Colombia SAS, the company managing the brand in the country, reported operational revenues of 26,223 million pesos at the end of 2023, a 20% decrease compared to 2022, and profits below 2%.

The multinational also recorded a negative equity of more than 4,000 million pesos and a balance of liabilities and assets with a negative differential of 5,000 million pesos, approximately 1.3 million dollars, with the Superintendence of Companies.

As imported fashion prices rise in Colombia, demand has slightly contracted due to reduced household spending.