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Fashion retailer Forever 21 lodges for Chapter 11 bankruptcy protection in the US

Steve Murphy

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Forever 21 bankruptcy

Forever 21, the California-based fashion retailer has lodged for bankruptcy protection on Sunday in Wilmington, Delaware.

The Chapter 11 bankruptcy filing allows Forever 21 to continue operating as it plans to close unprofitable outlets across the US. The firm said that it plans on exiting most of its international outlets in Europe and Asia. However, it would continue operating in Latin America and Mexico.

The iconic teenage clothing brand expects to shut around 350 stores globally, said a spokesperson, including at least 178 US outlets.

The company sells affordable, trendy accessories and clothes and competes with brands like H&M and Zara. However, a few analysts say that the firm has been off-track over the last 5 years.

Moreover, it has lost its youth fan following searching for comparatively cheap clothing. Besides, the company, just like other fashion retailers, experienced heavy competition posed by online outlets.

The Chapter 11 filing postpones Forever 21’s obligations towards its creditors, thus providing it time for strategizing its debts and repositioning the business.

All being said, Forever 21 employs around 6,400 fulltime and 26,400 part-time staff, as per the filing. The retailer has lodged a motion in the court asking permission for paying the workers.

Meanwhile, as a part of the filing, Forever 21 has garnered $275mn as financing from its existing creditors as well as $75mn as a new capital.

In a statement, the spokesperson said that the company is expected to have 450 to 500 outlets worldwide post this process. The retailer doesn’t expect to leave any key US markets, the spokesperson added.

The filing is a decisive and deliberate step to place the firm on the path of success for the coming future, said the spokesperson.

Forever 21, in one public letter, assured its loyal customers saying the outlets are open and would continue to feel just like a regular day.

Steve Murphy has handled various businesses throughout his career and has a deep domain knowledge. He founded Report Door in an attempt to bring the latest news to its readers. He is glued to the stock market most of the times and just loves being in touch with the developments in the business world.

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Business

Amazon Will Soon Launch a New Grocery Store in Los Angeles

Steve Murphy

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Amazon Grocery Store
Image Credit: Wikimedia Commons

Amazon confirmed to open a new grocery store in Los Angeles. It will totally be the new set of supermarkets or the start of the new chains. The store will be in the woodland hills community, opens by some time next year.

This new store won’t be like Whole Foods but a competition against Target and Walmart. The Whole Food grocery chain was bought by Amazon in 2017 for $13.7 billion.

Amazon company didn’t mention anything about the locations it would be open, pricing, and brand name. However, the company has cleared about the checkout process that CheckOut will not be via Amazon Go Technology. In that Technology, customers didn’t wait in line to checkout, instead, it will be conventional like other grocery stores.

Till now, the company has only finalized the one location in the roughly $800 billion US grocery market. And even after its Whole Foods deal, Amazon remains a small player and rival Walmart is the leader.

This is how opening a new grocery store will help Amazon:

It will help Amazon, the world’s largest online retailer in reinforcing customer loyalty. As people are habitual to shop at a local store every week, it will increase the revenue growth of the company.

Overall this work will offer new competition to Kroger, SuperValu, and many other supermarket chains.

The grocery business will offer razor-thin margins, Amazon to lower prices while still trying to bring in a profit.

When it comes to grocery shopping, we know customers love choice, that’s distinct from Whole Foods Market. It will continue to grow and remain the leader in quality natural and organic food said Amazon’s spokesperson.

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Disney+ will be a Big Project of Walt Disney: It will stream Marvel shows

Steve Murphy

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Disney+ will be a Big Project of Walt Disney: It will stream Marvel shows
Image Credit: Disney+

Disney has decided to step towards the launch of Disney+ with streaming Marvel shows. Walt Disney has to face huge competition with Netflix. 

Many well-established companies have decided this too and failed in the internet age. However, Disney believes they won’t be one of them. Disney promised to show full original content to their consumers. And Consumers are actually waiting for the launch of Disney+. 

In 1923, when Disney started, they never imagined anything like Netflix. But now, everything is here, they are bringing everyone’s favorite characters for the launch. 

Like, The Mandalorian, is speculated to be the first premiere on the platform. The show will be based on the Star Wars universe about an interplanetary bounty hunter. With this, disney+ will be about streaming content for characters in the Marvel Universe. 

Disney is spending too much to make Disney+ a huge success

To create all this content and streaming services, Disney is actually spending millions. All the Star Wars series and the Marvel movies will be available on the Platform. 

The company’s budget for 2020 is nearly $1 billion dollars. Out of this budget, the maximum share belongs to the Marvel shows. 

Sources revealed that there will be three marvel shows will be released on the platform. The Falcon and the Winter Soldier, Hawkeye, and WandaVision will be in the Marvel Universe. Each show is reported to cost up to $25 million per episode. Accordingly $500 million will be the cost of 20 episodes. However, The Mandalorian will cost up to nearly $15million per episode.

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Is Chick-fil-A’s popularity at stake?

Steve Murphy

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Chick-fil-A

As per the reports, a newly released Drive-Thru performance study from QSR Magazine discloses the restaurants with the slowest and fastest average drive-thru times. As per the study customers usually, spend about an average of about 255 seconds or say 4.25 minutes while waiting in drive-thru lines between the speaker and the order window.

At Chick-fil-A, as per the study customers tends to wait for about 323 seconds or say 5.4 minutes. The report further says that the main cause behind this isn’t the poor service, but the demand. QSR Magazine is said to accurately measure a drive-thru wait using a mystery shopping and market research company in order to collect the data.

As per QSR’s methodology, each order was standardized to the main item, side item and drink, along with a minor special request, such as no ice, etc.

It’s said that the average wait time, he period between giving an order and receiving the food grew by more than a minute this summer from the previous one, as per the industry publication QSR, that is said to partner with a third party to test drive-thru service annually.

Chick-Fil-A has upped their level of the fast-food game by posting their team members outside, to take orders and payment from customers on their iPads while they wait. Breitbart News also reported that the fast-food chain had doubled its overall sales in recent years, despite protests against the restaurant because of its support for traditional marriage and Christian values.

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