Forever 21 announce the closure of up to 178 stores.

Forever 21 has about $500 million worth of debt, according to market research firm Mintel. The retailer plans to slash costs by closing many of its stores in North America and retreating from markets in Asia and Europe. It will continue to operate in Mexico and Latin America. The company, which filed for Chapter 11 protection, said it plans to restructure and eventually emerge from court supervision.

"In order to get the business back on track, lenders would have to be willing to pump more money into it and this could be a hard sell," Chana Baram, retail analyst at Mintel, said in a statement. "Only time will tell what will happen, but these are certainly troubling times for the fast-fashion retailer."

Forever 21's move on Sunday to declare bankruptcy and announce the closure of up to 178 stores. Here are three reasons the once-thriving retailer ended up in the bargain bin.