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Forever 21 is considering the closures and its US operator F21 OpCo. may declare bankruptcy as soon as March, Bloomberg News reported. This would be the fast-fashion chain's second bankruptcy filing in about six years.
Unless a buyer acquires the remaining locations, the retailer could be forced to liquidate, shutting down its roughly 350 remaining stores. At its height, Forever 21 operated more than 500 US locations and at least 800 worldwide.
Daily Voice has reached out to Forever 21 to confirm the reports and provide a list of closing locations. A spokesperson didn't respond as of press time.
Forever 21's brand is owned by Authentic Brands. F21 OpCo. is owned by SPARC Group, which merged with JCPenney in January to create Catalyst Brands, the operator of mall-based retailers like Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica.
Forever 21 previously filed for bankruptcy in 2019 before it was acquired by a group led by Simon Property Group, Authentic Brands, and Brookfield Property Partners. Since then, the company has faced ongoing challenges as mall traffic declines and consumer spending shifts toward online shopping.
Bloomberg also reported that Authentic will keep ownership of the Forever 21 brand through any bankruptcy and plans to license it to other retailers regardless of the US operator's sale or liquidation.
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