Forever 21 to reportedly shutter Los Angeles headquarters
Credits: Forever 21. US fashion retailer Forever 21 is believed to be preparing to close its Los Angeles corporate headquarters ahead of a potentially incoming bankruptcy filing, which could also result in the shuttering of 200 stores. According to a regulatory filing with the California Employment Development Department, seen and initially reported on by Los Angeles Daily News, layoffs at the headquarters are expected to begin April 21. The media outlet said that the move will impact managers, designers and supply chain directors, as well as the company’s chief financial officer and chief merchandising officer. The remaining employees will become remote workers when the headquarters closes entirely. This revelation comes on the heels of an earlier report by Bloomberg News that suggested Forever 21’s was on the verge of what would be its second bankruptcy filing in six years, this time initiating the process under its current US operator F21 OpCo. While an exact date for the filing has not yet been confirmed, sources for the publication said it was expected to launch in March, after which the company will seek out a buyer. If one can not be found, Forever 21 is believed to be planning to liquidate its retail network of around 350 stores. In a statement to Bloomberg, a spokesperson for the company said: “Forever 21’s operating company, which is the brand licensee in the US, continues to explore strategic options while also looking at ways to reduce costs across our operations and optimise our store footprint. “The efforts are ongoing and no final decisions regarding the outcome of the process have been made.” The ownership of Forever 21 will remain in the hands of its current parent company Authentic Brands Group, which licenses the retailer’s trademark and intellectual property to F21 OpCo, a subsidiary of JCPenney-owner Catalyst Brands. Forever 21 had first filed for Chapter 11 bankruptcy in 2019, and had launched a process of restructuring that resulted in the closure of several locations and a withdrawal from the Japanese, EU and UK markets. It was later acquired by Authentic Brands Group, Simon Property Group and Brookfield Property Group, which together sought to put an emphasis on the retailer’s Gen Z customers, as well as speed to market processes and a sustainable supply chain. FashionUnited has contacted Catalyst Brands with request to comment.
US fashion retailer Forever 21 is believed to be preparing to close its Los Angeles corporate headquarters ahead of a potentially incoming bankruptcy filing, which could also result in the shuttering of 200 stores.
According to a regulatory filing with the California Employment Development Department, seen and initially reported on by Los Angeles Daily News, layoffs at the headquarters are expected to begin April 21.
The media outlet said that the move will impact managers, designers and supply chain directors, as well as the company’s chief financial officer and chief merchandising officer. The remaining employees will become remote workers when the headquarters closes entirely.
This revelation comes on the heels of an earlier report by Bloomberg News that suggested Forever 21’s was on the verge of what would be its second bankruptcy filing in six years, this time initiating the process under its current US operator F21 OpCo.
While an exact date for the filing has not yet been confirmed, sources for the publication said it was expected to launch in March, after which the company will seek out a buyer. If one can not be found, Forever 21 is believed to be planning to liquidate its retail network of around 350 stores.
In a statement to Bloomberg, a spokesperson for the company said: “Forever 21’s operating company, which is the brand licensee in the US, continues to explore strategic options while also looking at ways to reduce costs across our operations and optimise our store footprint.
“The efforts are ongoing and no final decisions regarding the outcome of the process have been made.”
The ownership of Forever 21 will remain in the hands of its current parent company Authentic Brands Group, which licenses the retailer’s trademark and intellectual property to F21 OpCo, a subsidiary of JCPenney-owner Catalyst Brands.
Forever 21 had first filed for Chapter 11 bankruptcy in 2019, and had launched a process of restructuring that resulted in the closure of several locations and a withdrawal from the Japanese, EU and UK markets.
It was later acquired by Authentic Brands Group, Simon Property Group and Brookfield Property Group, which together sought to put an emphasis on the retailer’s Gen Z customers, as well as speed to market processes and a sustainable supply chain.
FashionUnited has contacted Catalyst Brands with request to comment.
