Everywhere in the retail industry, one question has been the order of the day: Is Forman Mills going out of business? This industry is known for its constantly evolving nature – where companies often face challenges. So, it’s not new to see any brand or company throw in the towel and decide to bow out of the game.
However, the news about Forman Mills has triggered many questions in curious minds. Recently, the company suffered some financial challenges that brought it to the spotlight and became a discussion among its loyal customers.
But is Forman Mills going out of business really? What’s really happening behind the scenes of this popular retail chain? Keep reading to discover the truth about Forman Mills’ closure speculation.
Let’s Take a Closer Look at Forman Mills
Forman Mills is a name synonymous with discount retail, having its foundation deeply embedded in the city of Philadelphia. Founded by Richard Forman in 1985, the company began its journey with Forman at a flea market on Frankford Avenue selling T-shirts.
Over the years, the single store expanded into a ‘Big Box’ warehouse-style outlet chain, marking its presence not just in Philadelphia but also in Michigan, New York, New Jersey, Delaware, and Maryland.
With a rich history that began with an $80 loan from his father, Rick Forman’s entrepreneurial spirit saw the company flourish, offering customers a vast range of apparel beyond just “tees and sweats.”
By 2016, Forman Mills grew to house 36 stores, all before its acquisition by the New York-based investment firm, Goode Partners L.L.C.
But recently, the company has faced bankruptcy as it navigates the sea of debts that threatens the continued operation of the company. And this is exactly what brought the question: Is Forman Mills going out of business?
Is Forman Mills Going Out of Business?
Rumors and concerns have been swirling about Forman Mills potentially going out of business, especially after the company laid off a significant number of employees and seemed to be on the verge of closing several of its stores.
The situation became even more concerning when the company filed WARN notices across multiple states, indicating potential layoffs and store closures. However, the good news is that Forman Mills is not going out of business.
The company was rescued from bankruptcy when Shoppers World came to its rescue and acquired the company. If you have been a loyal customer of Forman Mills and fear the potential closure of your dear brand, you don’t have to – Forman Mills is not going out of business.
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Forman Mills Finds Buyer and Escaped Bankruptcy
Forman Mills has been in the news for a couple of weeks about facing bankruptcy. And as we said earlier, that is where the question ‘Is Forman Mills going out of business?’ came from.
However, in a fortunate turn of events, the New Jersey-based retail discount store managed to stave off bankruptcy as it found a buyer in Shoppers World, a renowned company with a strong base in New York. This acquisition saved not only the Forman Mills brand but also hundreds of jobs that were at risk.
Shoppers World, with its deep community roots, financial stability, and a history of retail dating back to the 1930s, expressed intentions to retain all Forman Mills locations. That, of course, is good news for all Forman Mills employees whose jobs have been on the line because of the potential closure.
The future now appears brighter for Forman Mills, especially with the plans to reopen its store at 48th and Market Streets.
Is Forman Mills Facing Financial Challenges?
Yes, like many brick-and-mortar stores in recent times, Forman Mills has been grappling with financial difficulties. These challenges were evident when Forman Mills had to lay off 119 workers from its Pennsauken headquarters.
It was also clear that the retail chain was presently navigating a sea of debts when Kevin Hess, the company’s chief financial officer, mentioned that the company would file for Chapter 11 bankruptcy if the sale didn’t go through.
But Forman Mills isn’t the only retail company presently on the hot seat and planning to close stores. The retail landscape is competitive, with giants like David’s Bridal and Bed Bath & Beyond facing similar struggles.
Is Forman Mills Going Out of Business – Final Note
So, is Forman Mills going out of business? The answer, for now, is no. Thanks to its acquisition by Shoppers World, the company has managed to find solid ground once again.
While challenges remain in the retail industry, Forman Mills, with its rich history and deep Philadelphia roots, is expected to continue serving its loyal customers. However, with this acquisition, we may need to expect some changes to the operations of the brand in the coming days. But as of the time of writing this post, there have not been any official announcements concerning this. Until then, let’s keep our fingers crossed.
So, is Forman Mills going out of business? No!
FAQs
Is Forman Mills still around?
Yes, Forman Mills is still in operation. Despite facing significant financial challenges and potential bankruptcy, the company managed to find a buyer and continues to serve its customers across various locations.
Who bought out Forman Mills?
Forman Mills was successfully acquired by Shopper’s World, a well-established retail company based in New York. The acquisition by Shopper’s World, with its long-standing reputation and financial stability, has helped secure the future of Forman Mills and its employees.
How many locations does Forman Mills have?
As of the latest data, Forman Mills operates 44 locations spread across 11 states. The company, known for its deep roots in Philadelphia and its commitment to its neighborhoods, continues to grow and meet the needs of its diverse customer base.
Who are Forman Mills competitors?
Forman Mills competes in the retail market against several notable companies. Its top competitors include:
- Selfridges Group, which is a global fashion retail conglomerate
- Joules, a UK-based premium lifestyle brand
- Nordstrom, a high-end department store chain
- Jigsaw, a British fashion and lifestyle brand
- Kmart Australia, one of the largest discount department stores in Australia.
How long has Forman Mills been around?
Forman Mills has been a recognizable name in the retail industry since 1985. Founded by Richard Forman in Philadelphia, the company quickly grew in prominence.
In 2016, after more than three decades of operation, the business, which by then had 3,000 employees and dozens of stores, was sold to Goode Partners, a private equity firm based in New York City.
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