Forever 21 Files for Bankruptcy, Closing 178 U.S. Stores
Forever 21 may not be forever anymore as it has become the latest retailer to bite the dust in the never-ending saga of store closures.
In a press release, it was announced that the LA-based fast-forward fashion retailer filed for Chapter 11 bankruptcy on Sunday. As part of their "global restructuring", they plan on closing 350 stores around the world including 178 in the U.S. According to Forever 21's Executive VP,
This was an important and necessary step to secure the future of our Company, which will enable us to reorganize our business and reposition Forever 21.
The company has borrowed $350 million from its lenders to continue to operate its stores and website as normal while revitalizing the brand.
Founded in 1984, Forever 21 has 815 stores around the globe. We currently do not know which stores will be affected. There are several stores around Michigan including two in West Michigan: Tanger Outlets in Byron Center & the Woodland Mall.
In a letter to its customers, they say they do not plan on exiting any major markets.
According to CNN Business, there have been more than 8,200 store closings this year alone with even more expected.
...and may reach 12,000 by the end of 2019, Coresight predicts.