Forever 21, the teenage clothing store chain that rode America’s mall boom and bust, has filed for bankruptcy.
According to CNN Business, the chain said it is planning to overhaul its global business, closing between 300 and 350 stores, including as many as 178 in the United States. It also plans to exit “most of its international locations in Asia and Europe.” The company, which currently has 549 US stores and 251 in other countries, will continue to operate in Mexico and Latin America.
In a letter to customers on Sunday night, the company said that decisions about which US stores would close were continuing, “pending the outcome of continued conversations with landlords.”
“We do however expect a significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the US,” the company said.
Linda Chang, executive vice president for the company, said in a news release that filing for Chapter 11 bankruptcy is “an important and necessary step to secure the future of our Company, which will enable us to reorganize our business and reposition Forever 21.”
All is not lost. There will still be plenty of Forever 21 stores available for customers to shop.
Good luck, Forever 21.
