Popular fashion retailer closing CA headquarters and laying off over 650 SoCal employees

Published on

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.

RELATED: Popular SoCal surf and swim brand laid off 363 employees in CA – holding extra 60% off online sale 

spot_img

Latest articles

Sen. Josh Hawley introduces $600 tariff rebate bill

Senator Josh Hawley (R-Mo.) introduced the American Worker Rebate Act, proposing rebate $600 checks...

California court sentences AML Bitcoin founder to 7 years for $10 Million fraud

CALIFORNIA – The U.S Department of Justice (DOJ) announced that cryptocurrency CEO Rowland Marcus...

Americorps California reopens recruitment for paid service roles

CALIFORNIA – California Volunteers has resumed AmeriCorps recruitment after federal cuts sidelined thousands of...

P&G to raise U.S. prices on 25% of products amid tariff pressures, cut 7,000 jobs over two years

Procter & Gamble (P&G) announced July 29 that it plans to raise prices on...

More like this

P&G to raise U.S. prices on 25% of products amid tariff pressures, cut 7,000 jobs over two years

Procter & Gamble (P&G) announced July 29 that it plans to raise prices on...

California Competes $308 Million tax credit application window open

CALIFORNIA – The California Competes Tax Credit application period is now open until August...

Poppi settles $8.9 Million false ad lawsuit in California – consumers can file claims

CALIFORNIA – VNGR Beverage, LLC, maker of Poppi drinks, has agreed to an $8.9...