SM Retail Keeps 15 Forever 21 Stores Open in the Philippines

SM Retail will keep all 15 Forever 21 stores open across the Philippines following a bankruptcy filing by the brand’s US parent company in October 2019.

SM Retail, which holds the majority stake in the local joint venture, confirmed that domestic operations will remain unaffected by the overseas restructuring.

Insulation From Global Closures

The voluntary bankruptcy in the United States ensures the parent company retains control of its assets while restructuring, even as it is expected to close around 350 stores worldwide, primarily in its main US market.

Ponciano Manalo, president and chief executive officer of SM Retail, confirmed that domestic sales diverge sharply from struggling Western markets.

There is no effect on our Philippine operations. Forever 21 Philippines continues to be one of the stronger global operations.

Joint Venture Structure Protects Footprint

Local ownership shields the Philippine network from overseas insolvency fallout. SM Retail controls domestic operations and houses the stores inside its nationwide mall network. This structure spares the brand from the heavy standalone lease liabilities that broke its Western counterpart.

Across flagship commercial centres, the steady 15-store footprint prevents sudden vacancies. North American landlords face empty retail space as hundreds of large-format units wind down. Philippine commercial tenancy under SM Retail remains fixed.

Decade of Local Expansion

Do Won and Jin Sook Chang founded Forever 21 in California in 1984. The chain expanded rapidly across international shopping centres on a fast-turnaround, budget apparel model.

Its Philippine debut arrived in 2010 through the SM Retail partnership, opening at SM Megamall in Mandaluyong. The domestic footprint expanded steadily across metropolitan retail hubs over the following nine years.

Marketing Push for Peak Quarter

Fresh capital is now moving into inventory and promotional campaigns for the fourth-quarter shopping period. Year-end consumer spending in the Philippines represents the most lucrative sales window for apparel merchants.

Regular merchandise shipments will reach retail floors throughout the final quarter as marketing campaigns roll out across all 15 branches.