CALIFORNIA – Forever 21, a popular fashion retailer, notified the California Employment Development Department (EDD) that it was closing its corporate headquarters in Los Angeles and laying off 358 employees.
The retailer is also laying off 300 Southern California store employees effective at the end of April.
According to Bloomberg, the retailer may be preparing to close 200 stores nationwide as part of a bankruptcy process that will begin next month.
Forever 21 could file for bankruptcy and try to find a buyer for its remaining stores. If no buyer is found, the chain could close all of its 350 stores.
“The efforts are ongoing and no final decisions have been made regarding the outcome of the process or the number of stores that may be closed,” said the company in a statement.
Would be the second bankruptcy filing
The potential bankruptcy would be Forever 21’s second filing.
It first filed for bankruptcy in 2019 due to having too many stores and difficulty adapting to online shopping trends.
In addition, increased competition from brands like Shein and Temu offered trendy clothing at even lower prices than Forever 21.
The retailer announced they would be closing 178 stores at the time. A group of brands – Simon Property Group, Brookfield Properties, and brand management firm Authentic Brands Group (ABG) purchased Forever 21 for $81 million.
After the buyout, the Forever 21 worked to improve its online shopping experience and updated its products to match what customers wanted.
However, recent developments indicate ongoing challenges.
Stores listed for closure in SoCal
According to WARN, these are the eight stores scheduled for permanent closure in Southern California:
20 City Blvd W Ste R11, Orange
3700 Galleria at Tyler Mall, Riverside
4701 Mills Circle, Ontario
12482 N Mainstreet, Rancho Cucamonga
5060 Montclair Plaza Lane, #2121, Montclair
2800 N Main Street #201, Santa Ana
2326 Lakewood Center Mall, Lakewood
200 Los Cerritos Mall, Cerritos
There is currently a 21% off sitewide sale on the Forever 21 website.
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