US fashion retailer Forever 21 to pull out of Taiwan: reports

The fast-fashion chain opened 2 shops in 2015

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A Forever 21 store overseas.

A Forever 21 store overseas. (AP photo)

TAIPEI (Taiwan News) - United States-based fast-fashion retailer Forever 21 will close its last remaining store in Taiwan before the end of the month, reports said Friday.

The move will leave 58 people out of a job, less than four years after the company entered the highly competitive Taiwanese market, the Apple Daily reported.

The U.S. firm founded by a South Korean immigrant first opened a shop in June 2015 at the ATT 4 Fun shopping mall close to Taipei 101.

Just one month later, another three-floor store opened on the Taiwanese capital’s Zhongxiao East Road section 4, another popular shopping area.

Last September, the company suddenly announced the closure of its ATT 4 Fun shop, citing the end of its rental agreement and saying it would not affect the fate of its single remaining Taiwan store.

However, the Apple Daily reported Friday that Forever 21 would also be shuttering that shop by the end of March. Staff reportedly received a notice telling them that over the past year, business had not reached an ideal situation but registered continuous losses, leading to the painful decision to withdraw from Taiwan, according to the Apple Daily.

Monthly rent at the store amounted to NT$2 million (US$64,800), with the added wages costing the company a total of at least NT$5 million a month, the report said.