Forever 21 Bankruptcy: What It Means For 18 GA Stores

GEORGIA — Forever 21, the discount clothing store that has been a mall staple for years, is set to end its U.S. operations after initiating the Chapter 11 bankruptcy policy, representatives said.

Stores will remain open for now, but the company will begin liquidation sales with the intention to close all locations if there is no potential buyer.

"Through their chapter 11 cases, the company will implement an orderly wind down of its U.S. business while continuing to conduct a marketing process to solicit interest in a going concern transaction or a sale of some or all of its assets," representatives stated in a news release.

The company filed for bankruptcy in 2019, but the problems remained consistent: rising costs, economic challenges and hearty competition from others in the fast-fashion side of the industry.

"While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends," Forever 21's Chief Financial Officer Brad Sell said. "As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders."

In Georgia, Forever 21 has 18 locations. They include:

• 1000 N. Point Cir., Alpharetta
• 1429 Cumberland Mall, Atlanta
• 231 18th St., Atlanta
• 3393 Peachtree Road NE, Atlanta
• 4400 Ashford Dunwoody Road, Atlanta
• 3450 Wrightsboro Road, Augusta
• 3333 Buford Drive, Buford
• 3501 Manchester Expwy., Columbus
• 6594 Douglas Blvd., Douglasville
• 121 Pavilion Pkwy., Fayetteville
• 400 Ernest Barrett Pkwy., Kennesaw
• 5900 Sugarloaf Pkwy., Lawrenceville
• 2929 Turner Hill Road, Lithonia
• 1000 Tanger Drive, Locust Grove
• 1000 South Lake Mall, Morrow
• 200 Tanger Outlets Blvd., Pooler
• 7804 Abercorn St., Savannah
• 915 Ridgewalk Pkwy., Woodstock

Forever 21’s locations outside of the U.S. are operated by other licensees and are not included in the Chapter 11 filings, representatives said.