Dubai: As media reports said that Forever 21 will be closing most of its international locations in Asia after it filed for bankruptcy, the company’s stores in the UAE are still open.
When contacted, a number of outlets in Dubai said they were operating normally and expected to remain open for the foreseeable future. They said there had not been mention of shutting down locations.
The Forever 21 outlet in Dubai Mall remains closed, but the mall’s website states that it is under renovation.
Dubai-based Sharaf Group, which brought in Sharaf DG to the market, owns the franchise license for Forever 21. Such a set-up typically means that a local company has the right to use the brand name for a certain number of years, selling its products and operating its stores while getting support from the brand.
Costs of operations as well as a fee are paid by the company buying a franchise license rather than the brand. It is unclear, however, if Forever 21 plans to keep its franchise deals and its overall brand name.