CFO Of Forever, 21, A Fast Fashion Retailer In The US Has Offered To Resign.

U.S.A

Retailer

Recently, its CFO Elizabeth Jain has resigned and its departure will take effect in June 10th.

CEO Do Won Chang pointed out that during her 6 years, Forever 21 has grown into the world's leading fashion retailer.

The company said it had launched external recruitment to find full-time successors until the new CFO took office.

The head of corporate strategy will co-ordinate the accounting and taxation departments and wages.

So far, the company has opened 34 stores this year, and plans to open 48 new brands, which already own 774 stores in 49 countries.

Since last summer, there have been rumors that the fast fashion retailing business is poor and sales are slowing down.

Recently, industry insiders say the company is negotiating a $150 million loan, and the overexpansion of the brand is facing the problem of capital tension.

However, the company said that the report on financial difficulties was "absolutely wrong".

On Friday, Do Won Chang also responded to those unfavorable rumors. He said: "Forever 21's business strength is still strong because companies are committed to taking positive actions and strategically evaluating the portfolio of brands and cutting costs in the right place.

At the same time, the company actively set up Forever 21 and F21 RED new stores in the global market. In this regard, the company saw a positive response from consumers.

F21 RED is the company's lower price concept store.

Although Do Won Chang calls the company's financial health, some credit analysts disagree.

They have been complaining that the company does not provide enough up-to-date financial information to analysts to assess the company's qualification level. Suppliers of goods need to understand the credit strength to ensure that the company will pay the order and will deliver the goods to the store.

Some analysts have pointed out that Forever 21 is facing the dilemma that consumers are beginning to wake up their consumption ideas. Most of the products of Forever 21 are priced between 4 US dollars and 20 dollars. Now consumers are making choices about the availability and morality of clothing, and are getting tired of Forever 21 inferior quality and cheap goods.

Data show that this kind of awakening of consumers is greatly reducing the number of people visiting Forever 21 shops and the number of e-commerce websites. More and more people are pulling out of this cycle of consumption of mediocrity and no longer buying cheap, mass produced clothes.

For the mainland market, Forever 21 also missed the best market timing. The first tier market was almost divided by ZARA, H&M and UNIQLO, and it could only retreat to the two or three line market. At present, the size of the shop is still far behind the top three, and there are only 14 shops in the mainland.

Brian Duke, an analyst at RBC capital market, said: "after 5 to 10 years, Forever 21 will lose healthy cash flow. According to the latest business channel survey, the same store sales growth of Forever 21 began to decline in the first few years.