Forever 21’s Exclusive Shipper Breaks Ties with Fashion Retailer

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Fast fashion retailer Forever 21 appears to be falling victim to the recent slowdown seen by cohorts H&M, Urban Outfitters, and even larger retailers such as Nordstrom and Neiman Marcus.

The downtown apparel company lost out on its exclusive contract with Elizabeth, N.J. shipping firm EZ Mailing Services Inc., operating as EZ Worldwide Express.

The shipper filed for bankruptcy in January citing a disappointing holiday season but its Forever 21 “business has declined precipitously” this year, according to documents filed last month.

Documents show that a five week period from April 8 to May 5 saw Forever 21 sales range from about $352,000 to $428,000 compared with $629,000 to $780,000 for the same period last year.

EZ Worldwide signed an agreement with Forever 21 two years ago to ship to at least 171 stores until 2019, according to court documents. The deal proved lucrative as payments from Forever 21 accounted for nearly half of EZ Worldwide’s annual revenue of about $53 million.

Forever 21 told the Business Journal it has since transitioned to other delivery providers and accepted the termination agreement with EZ.

“Forever 21 and EZ Worldwide Express came to an agreement to separate, after EZ’s difficult financial conditions meant that it could no longer provide the same delivery services,” the company said in an emailed statement. “Forever 21 looked at different financing options to assist EZ during its difficult financial time in order to continue the relationship, but were unable to come to an agreement.”

Forever 21 has more than 35,000 employees and operates more than 600 stores worldwide, including China, Europe, India, and Mexico.

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