FOREVER 21 is shuttering another store, launching steep discounts as part of an ongoing financial struggle that could lead to bankruptcy.
The fast-fashion retailer has kicked off “everything must go” sales at its Westfield Montgomery Mall location in Bethesda, Maryland, with markdowns ranging from 10% to 40%.
AFPForever 21, once a dominant force in affordable has struggled to keep up with fast-growing online competitors like Shein and Temu[/caption] GettyThe chain is once again facing financial distress, with reports suggesting its owners are weighing bankruptcy as an option[/caption] GettyRetail analysts warn that if Forever 21 does enter bankruptcy, liquidation is a strong possibility[/caption]Signs reading “all sales final” were plastered throughout the store over the weekend, signaling the latest casualty in the shifting retail landscape.
A store representative said the clearance sale is expected to last two to three months before the location closes permanently, reported The Mocoshow.
This comes days after Macy’s announced the closure of another store in Silverdale, Washington, adding to the growing list of locations shutting down nationwide.
The iconic retailer plans to close 66 stores in 2025 as part of its ongoing efforts to restructure.
The closures are part of the company’s “Bold New Chapter” strategy, which was announced in February 2024.
FILING FOR BANKRUPTCY, AGAIN?
Forever 21 was once a dominant force in affordable fashion.
However, it has struggled to keep up with fast growing online competitors like Shein and Temu.
The Wall Street Journal revealed in February that the chain was once again considering a Chapter 11 bankruptcy filing.
This comes after Forever 21 filed for bankruptcy in 2019.
Mall giants Simon Property Group and Brookfield Corporation, along with brand licensing firm Authentic Brands Group, bought Forever 21 out of bankruptcy in 2020, saving it from liquidation.
Now, those same owners are searching for buyers to take over profitable leases, according to WSJ.
If a buyer isn’t found, Chapter 11 reorganization remains on the table.
The company has enlisted restructuring adviser BRG to explore potential solutions.
A Forever 21 spokesperson said in a statement that parent company Catalyst Brands “is exploring a range of strategic options”.
The spokesperson said the company was committed to achieving the “best possible outcome.”
Forever 21 Locations by State
Forever 21 currently has 369 locations in 43 states:
Alabama (3) Arizona (9) Arkansas (2) California (61) Colorado (6) Connecticut (6) Delaware (2) Florida (27) Georgia (18) Idaho (1) Illinois (15) Indiana (7) Iowa (2) Kansas (2) Kentucky (3) Louisiana (6) Maryland (6) Massachusetts (11) Michigan (9) Minnesota (3) Mississippi (1) Missouri (5) Nebraska (1) Nevada (6) New Hampshire (3) New Jersey (15) New Mexico (3) New York (23) North Carolina (10) North Dakota (1) Ohio (10) Oklahoma (3) Oregon (5) Pennsylvania (17) Rhode Island (1) South Carolina (3) South Dakota (1) Tennessee (6) Texas (33) Utah (3) Virginia (9) Washington (9) Wisconsin (2)Credit: Forever 21
Retail analysts have warned that if Forever 21 does enter bankruptcy, liquidation is also an option.
The chain’s struggles are similar to other mall retailers like JCPenney, Brooks Brothers, and Aeropostale, which were also bought by Simon and Brookfield to help keep malls afloat.
Even after partnering with Shein in 2023 to boost its online presence, Forever 21 has struggled to reclaim its past success.
Authentic Brands CEO Jamie Salter said last year that the deal had seen only “moderate success.”
The retail shake-up is already evident at Montgomery Mall.
Aeropostale shut down in January, with Garage set to take over the space.
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