Forever21 exiting the Colombian market

Forever21 is exiting the Colombian market after 12 years. The departure begins with the closure of its flagship store in Bogotá, located in the highly sought-after T Zone on 82nd Street in the northern part of the city.

The closure of this large-format store was marked by a liquidation sale offering discounts of up to 70 per cent. Currently, Forever21 still operates two more stores in the country, one in Bucaramanga and another in Medellín, which will also be closing.

The fast fashion brand first opened 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 per cent decrease compared to 2022, with profits below 2 per cent.

The multinational also reported a negative equity of over 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, according to the Superintendence of Companies.

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