Forever 21 has unpaid bills

Fast-fashion retailer Forever 21 is reportedly having trouble paying its bills as vendors report late payments. Some lenders are even withholding credit, according to the New York Post.

The privately held company recently closed two stores in California, but owners Don and Jin Sook Chang are not discussing financial matters. The retailer operates more than 600 stores nationally.

Vendors are reporting that Forever 21 has been slow to pay bills and one lender, Hildun, has pulled its credit lines.

"After having a great five- to 10-year run, they probably don't have the cash flow they had before when they were the ones taking market share," RBC Capital Markets analyst Brian Tunick told the New York Post. "Our contacts in the channel have estimated that they've had negative same-store sales for the past several years."

Forever 21 may have overextended itself, opening too many large locations and developing a new lower-cost format F21 Red.

F21 Red now has 30 stores that sell apparel basics at even lower prices than the Forever 21 flagships, selling $1.80 camisoles and $7.80 denim for women and girls, undercutting the company's own low-price leader position.

For more:
- see this New York Post article

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