Forever 21 may need to start looking for a new shipping company, as its current shipping company EZ Worldwide Express has abandoned them. The shipping firm sighted slow business as the reason so much that the work isn’t profitable.
The Wall Street Journal reported that EZ Worldwide Express is downsizing after canceling Forever 21’s shipping contract. Under the agreement, EZ Worldwide Express agreed to be Forever 21’s exclusive carrier for at least 171 stores until 2019, according to U.S. Bankruptcy Court in Newark, N.J.
The shipping firm filed for bankruptcy in January and has since laid off 200 workers and plans to sell about 140 vehicles and other equipment. Payments from Forever 21 contributed to nearly half of EZ Worldwide Express’s annual revenue in between $25 million and $30 million, but Forever 21’s “business has declined precipitously,” according to EZ Worldwide Express lawyers said in earlier court documents.
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