Forever 21 Sued by Vendor
A clothing manufacturer recently filed a breach-of-contract suit against trendy, fast- fashion company Forever 21 Inc. The Los Angeles–headquartered retailer intends to become an $8 billion company by 2017, according to a company statement.
Fashion Life Inc., a Los Angeles–area company that manufactures a women’s line called Fang, said Forever 21 owes it $55,832.50 for a clothing order that the retailer never paid for.
The six-page complaint, filed in Los Angeles County Superior Court on Sept. 10, said Forever 21 accepted a shipment of clothes delivered by Fashion Life. However, Forever 21 did not inform Fashion Life that it had rejected the order and it did not return the order either, the suit said.
Fashion Life asked Forever 21 for compensation but said the retailer declined to pay for the order. According to the lawsuit, the vendor requested that the retailer pay what it allegedly ordered, plus attorneys’ fees and other damages.
Fashion Life’s Fang brand includes items such as a fitted baby tee top with details such as glitter graphics. The 21-year-old company has sold to retailers such as Nordstrom, Belk, Kohl’s and Wet Seal.
Forever 21 operates more than 730 stores in 48 countries and claims to be the fifth-largest specialty retailer in America, according to the privately held company. The average footprint of a store is 38,000 square feet. It not only intends to become an $8 billion company in 2017, but another goal is to open 600 stores in the next three years, according to its website (www.forever21.com).
The company has a history of litigation. In the past, it has been sued by fashion designers for copyright infringement and former employees for wage theft. According to recent media reports, in 2015 the company has been sued by retailer H&M for copying the design of a tote bag. Forever 21 has also been sued by a transgender woman, a former employee, for discrimination. On Sept. 21, Creditors Adjustment Bureau Inc., a Sherman Oaks, Calif.–based collections company, filed suit against the retailer for breach of contract. A trial for the case has been scheduled for March 2017.
Kenneth J. Freed, an attorney and principal for Creditors Adjustment Bureau, did not return a phone call requesting comment on the case. Forever 21 also did not return a phone call and an email before press time requesting comment on claims filed against it.