Forever 21'S Special Freight Company Went Bankrupt.

Continue to languish, now

The specialized freight company also went bankrupt because of the low performance of Forever 21.

EZ Worldwide Express, a cargo company in Newark, New Jersey, reported bankruptcy in January this year, and half of its annual revenue comes from Forever 21 Inc., about 25 million US $-3000 million, according to a report on Monday.

According to a document submitted to the bankruptcy court by the EZ Worldwide Express lawyer in May 20th, the freight company's income from Forever 21 Inc. is $352483 a week, compared with $629817 in the same period last year for $629817, and nearly 50%.

The date of cargo agreement between EZ Worldwide Express and Forever 21 Inc. was originally 2019, but the two sides have already agreed to terminate the agreement ahead of schedule. EZ Worldwide Express has laid off 200 people since January, and has sold 140 freight cars and other forklifts and pmission equipment. The above personnel and equipment are serving at least 171 stores of Forever 21 Inc..

It is reported that EZ Worldwide Express's customers include Disney Disney and Wal-Mart.

H&M and so on.

For the termination of the agreement with EZ Worldwide Express, Forever 21 Inc. said in an interview that after the financial difficulties of EZ Worldwide Express, it means that it can no longer provide the same freight service, so the two sides have decided to terminate the agreement through friendly negotiation.

Forever 21 Inc. tried to help EZ Worldwide Express financing, but failed to cooperate. So Forever 21 Inc. can only choose other freight companies in order to continue to provide high-quality experience for customers.

However, sources said that Forever 21 Inc. lied, Forever 21 Inc. did not really help EZ Worldwide Express financing to get out of bankruptcy, but on EZ Worldwide Express submitted bankruptcy application has begun to use other freight companies.

In fact, the liquidity of Forever 21 Inc. has also been questioned. However, limited by the fast fashion group of the United States, Private Companies has no obligation to disclose capital, and even its creditors complain about the unclear operation of the company.

Since last year, rumors about the rapid expansion of Forever 21 Inc., the negative effects of sales, the decline in sales and the tight cash flow have been rampant.

Although the company has consistently denied rumors of a tight chain of funds, its response to supply chains and creditors has made the denial of the US company look weak. Earlier this month, C.Elizabeth Jain, chief financial officer of Forever 21 Inc., announced its departure.

This month, it was reported that after the opening of the first British store in Bermingham Bullring shopping center in 2010, the expansion of Forever 21 in the UK once reached 8 stores, but the British market continued to lose money, and the British market was the most crowded market of fast fashion and high street brands. Forever 21 then began to close its stores and found it difficult to compete in the British market. Forever 21 began to reduce the first store area of Bermingham from the 8 of the peak to the 4 4 from the beginning of fiscal year 2014.

In fact, the decline of the fast fashion industry is not only reflected in the Forever 21 Inc., but its Asian rival Uniqlo UNIQLO has had a tough time recently.

Uniqlo UNIQLO parent Fast Retailing Co., Ltd. (9983.T) XXX group released its extremely bad medium-term results in early April, and the second reduction in annual profit forecasts.

As of the first half of February 29, 2016, Fast Retailing Co., Ltd., XXX group's operating profit was only 99 billion 300 million yen, down 33.8% year on year, and net profit fell 55.1% to 47 billion yen compared with the same period last year.

The total income is only 10117 billion yen, achieving 6.5% growth.

During the period, the business of Uniqlo, UNIQLO and UNIQLO in the group of Greater China and South Korea showed a profit contraction, and the US deficit continued to expand, resulting in a 31.4% fall to 29 billion 400 million yen in the operation of the Uniqlo International Department of UNIQLO.

Hongkong and Taiwan in Greater China are selling back because of the weak local economy. South Korea's performance is not satisfactory, but sales and profits in Southeast Asia, Oceania and Europe have increased, in line with group expectations.

Uniqlo, the Japanese department's revenue and earnings also went back at the same time. Its performance was worse than group expectations, with revenues dropping slightly from 0.2% to 453 billion 600 million yen, while operating profit fell 28.3% to 64 billion 100 million yen.

Fast Retailing Co., Ltd., fast forward group, now expects to record operating profit of 120 billion yen in the 2016 fiscal year ending August, 33.3% lower than the 180 billion yen cut in January, 40% lower than the initial 200 billion yen, and 27% lower than the 2015 fiscal year, and the market is expected to be 168 billion 600 million yen.

Net profit is also expected to slash 45.5% to 60 billion yen from 110 billion yen.

The group maintains revenue of 1 trillion and 800 billion yen in the current fiscal year, up 7% over the 2015 fiscal year.

In addition, last week, Uniqlo UNIQLO UNIQLO, which had been blocked by expansion in the United States, had closed the 5 stores in Connecticut, New Jersey, cherry mountain, Pennsylvania, California, Beilin and New York stetton island.

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As for the fast fashion group of America, Gap Inc. (NYSE:GPS), the clipper group is even more needless to say that the group's namesake brand Gap Gap has gone down for only two years. So far, the group's same store sales have fallen for 14 consecutive months. The last two quarters of the group's only brand Old Navy, the Old Navy, has shifted from the previous high growth to the cliff type crash.

The group has changed to fourth chief executives to restore growth. However, under the leadership of CEO Art Peck with digital background, the group not only failed to recover, but further declined, and even the last engine of Old Navy Old Navy also stalled.

The world's second largest clothing retailer, H&M Hennes & Mauritz AB (HMb.ST), Hayne and Maurice, released last week's two quarter earnings report also showed that the group continued to decline and the outlook was bleak.

Data show that the two quarter earnings of H&M Hennes & Mauritz AB fell sharply compared with the previous year. In the two quarter ended May 31st, the pre tax profit of H&M Hennes & Mauritz AB AB declined by 17% to 7 billion 2 million krona, or about 850 million US dollars, less than the 7 billion 230 million Krona of the market expectation, the decrease was narrower than that of 29.6% in the first quarter.

After tax profits 5 billion 357 million kronor also decreased by 17% compared to the same period last year, which is worse than the market forecast of 5 billion 460 million krona. In the two quarter, H&M Hennes & Mauritz AB AB gross profit margin shrank by 180 basis points to 57.6%, only slightly ahead of the market forecast of 57.5%, with a total sales of 54 billion 341 million krona, an increase of 2.1% over the previous year, and an increase of 5% at the local exchange rate, but still hitting the lowest income growth rate in the past three years.

Excluding VAT value added tax, sales increased from 45 billion 867 million Swedish Swedish kronor to 46 billion 874 million Swedish kronor, or 5 billion 600 million US dollars in the same period last year, as well as 47 billion 700 million Swedish krona, which was expected by the market.

In addition to Europe's weather problems, the group's growth in the second and fifth largest markets in the United States and China has also slowed down significantly. According to the local exchange rate, the US growth rate has dropped from 11% in the first quarter to 7%, and China has decreased from 6% to 3%.

Zara parent Inditex SA maintains high speed sales growth

At present, among the fast fashion industry giants, only Zara parent Inditex SA (ITX.MC) Indo Textile Group has maintained steady growth in sales and profits.

Data show that in the first quarter of 2016 fiscal year 2-4, Inditex SA India India Textile Group achieved a net sales of 4 billion 879 million euros, up 11.5% from 4 billion 374 million euros a year earlier, and increased 17% after excluding the exchange rate effect.

In the first half of the two quarter of May 1st -6 13, the fixed exchange rate group sales recorded a strong growth of 15%.

In the first quarter, the net profit of Inditex SA Indo textile group increased by 6.3% to 554 million euros per year, the core profit of EBITDA 9.55 billion euros and operating profit of 705 million euros, respectively, an increase of 6.7% and 6.2% over the same period last year.

However, although the Inditex SA Indo Textile Group has the best performance in the fast fashion industry, the index data are still somewhat inferior to that of last year.