Fashion retailer Forever 21 is preparing to close at least 200 stores and lay off more than 350 employees at its corporate office as it struggles to remain viable in a highly competitive retail market, according to press reports.
The chain, which has faced challenges since filing for bankruptcy in 2019, has struggled to keep up with emerging fashion brands and affordable online retailers such as Shein and Fashion Nova. Originally targeting teenage girls when it opened in 1984, Forever 21 has since expanded its product offerings to include apparel and accessories for men and children.
According to Bloomberg News, the company is expected to file for bankruptcy again in an effort to find a buyer for its remaining stores. If a buyer is not found, Forever 21 may be forced to liquidate its remaining 350 locations.
In addition to store closures, the company is also shutting down its downtown Los Angeles corporate headquarters, as stated in a regulatory filing with the California Employment Development Department. A Worker Adjustment and Retraining Notification (WARN), which is required for significant layoffs, indicates that job cuts will begin on April 21.
Among those affected by the layoffs are managers, designers, supply chain directors, as well as the company’s chief financial officer and chief merchandising officer, according to the Los Angeles Daily News. Employees who remain with the company will transition to remote work once the corporate headquarters closes.
The decline of Forever 21 highlights the challenges faced by traditional retailers in an increasingly digital shopping landscape. With shifting consumer preferences and the rise of fast-fashion e-commerce giants, brick-and-mortar stores like Forever 21 continue to face mounting difficulties in staying relevant and profitable.
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