Forever 21 expected to close all 354 US stores on May 1
Forever 21 Credits: Unsplash Forever 21 is officially shutting its doors. The fast fashion retailer is believed to be preparing to close all of its 354 US stores today, May 1. This is according to court documents obtained by USA Today. The company’s operator, F21 OpCo, had been given until April 30 to find a buyer for the brand, however, no such party has stepped forward. As such, Forever 21’s leased stores in the US are all set to close. Many already began shuttering as early as April 1, it must be noted. A notice on the company’s website states that international stores will continue operating. Forever 21 filed for bankruptcy in the District of Delaware in March as competition among fast fashion giants began heightening. The company had also cited rising costs and economic challenges as further causes. It marked the second time in six years that the company had resorted to Chapter 11 protection, this time at the hands of its current parent company, Authentic Brands Group, which licenses the retailer’s trademark and intellectual property to F21 OpCo. This firm is associated with Catalyst Brands, the owner of JCPenney and Lucky. In line with its bankruptcy filing, Forever 21 would liquidate its retail network if no buyer was found. At the time, a spokesperson for the company told Bloomberg that it was continuing to “explore strategic options while also looking at ways to reduce costs across our operations and optimise our store footprint”. FashionUnited has contacted Forever 21 and its parent company, Authentic Brands Group, with a request to comment.
Forever 21 is officially shutting its doors. The fast fashion retailer is believed to be preparing to close all of its 354 US stores today, May 1.
This is according to court documents obtained by USA Today. The company’s operator, F21 OpCo, had been given until April 30 to find a buyer for the brand, however, no such party has stepped forward.
As such, Forever 21’s leased stores in the US are all set to close. Many already began shuttering as early as April 1, it must be noted. A notice on the company’s website states that international stores will continue operating.
Forever 21 filed for bankruptcy in the District of Delaware in March as competition among fast fashion giants began heightening. The company had also cited rising costs and economic challenges as further causes.
It marked the second time in six years that the company had resorted to Chapter 11 protection, this time at the hands of its current parent company, Authentic Brands Group, which licenses the retailer’s trademark and intellectual property to F21 OpCo. This firm is associated with Catalyst Brands, the owner of JCPenney and Lucky.
In line with its bankruptcy filing, Forever 21 would liquidate its retail network if no buyer was found. At the time, a spokesperson for the company told Bloomberg that it was continuing to “explore strategic options while also looking at ways to reduce costs across our operations and optimise our store footprint”.
FashionUnited has contacted Forever 21 and its parent company, Authentic Brands Group, with a request to comment.
