Forever 21 Bankruptcy: What It Means For RI's Store

WARWICK, RI — Forever 21, the discount clothing store that's been a mall staple for years, is set to end its U.S. operations after initiating the Chapter 11 bankruptcy policy, officials 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," the company said in a news release.

The company filed for bankruptcy in 2019 before this latest news, 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," said the company's Chief Financial Officer, Brad Sell.

"As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders."

Rhode Island has one Forever 21 location. The store is in Warwick at the Warwick Mall.

Forever 21’s locations outside of the United States are operated by other licensees and are not included in the Chapter 11 filings, officials said.

See Also:

• Red Robin May Close RI Location As Burger Chain Tries To Recoup Debt
• Joann Fabrics Plans To Close Only RI Store, 500 Nationwide.

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