Shopping Mall Staple To Close CA Headquarters, Shut Down 200 Stores: Report

LOS ANGELES, CA — Fast fashion retailer Forever 21 plans to close at least 200 of its stores nationwide as well as its Los Angeles headquarters as the shopping-mall staple struggles for viability amid rumors of a second bankruptcy, according to reports.

Forever 21 expects to close at least 200 of its 350 U.S. stores as executives continue to work on a bankruptcy process expected to launch as soon as next month. As part of that, Forever 21 would seek a buyer for its remaining stores — but if no qualified buyer emerges, the company would sell off all its assets and close all its stores, Bloomberg reported.

“Forever 21’s operating company, which is the brand licensee in the US, continues to explore strategic options, including a potential sale, while also reducing costs and optimizing its store footprint,” a representative for Forever 21’s operations owner Catalyst Brands told Bloomberg earlier this month. “The efforts are ongoing and no final decisions regarding the outcome of the process have been made."

However, the company has notified California state officials that it plans to close its corporate headquarters in Los Angeles and lay off 358 employees by April 21, according to the Employment Development Department.

That will include managers, designers, supply chain directors and the company's chief financial officer and chief merchandising officer, the Los Angeles Daily News reported.

Those who remain at the company will transition to remote work.

The company has offered no indication regarding which 200 stores it plans to close. It operates 58 stores in California.

Forever 21, known for quickly getting affordable and on-trend clothing to its stores, began as a brick-and-mortar store in Highland Park. At its height, it operated 500 stores in the U.S. and another 800 worldwide, according to the Los Angeles Times.

Married couple Do Won Chang and Jin Sook Chang ran the business until its bankruptcy in 2019, when its intellectual property and trademark were sold to brand management firm Authentic Brands. Its U.S. operating company, F21 OpCo LLC, is owned by Catalyst Brands, according to the Times.