The Well-Known American Clothing Chain That Closes Stores: Hundreds of Layoffs!

Forever 21, the famous fast fashion chain, is closing several stores in Southern California. The Los Angeles-based company has struggled to stay afloat after facing growing competition and a drop in sales. As part of its bankruptcy restructuring process, the brand is closing stores while seeking a new owner.

Store Closures and Layoffs

The company has announced that, as part of its restructuring process, it will close 12 stores in California, affecting hundreds of employees. The store closures coincide with the closure of its Los Angeles headquarters, where 358 people will lose their jobs.

The stores closing include those located in malls such as:

• The Outlets at Orange (20 layoffs)

• Main Place Mall in Santa Ana (24)

• Galleria at Tyler Mall in Riverside (63)

• Ontario Mills in Ontario (70)

• Victoria Gardens in Rancho Cucamonga (17)

• Montclair Place in Montclair (21)

• Lakewood Center Mall (30)

• Los Cerritos Mall (55)

The Impact of Bankruptcy and Restructuring

The company, which filed for bankruptcy in 2019, is struggling to adapt to the new e-commerce landscape. Sales have dropped, and physical stores have failed to compete with online brands like Shein and Temu, with much lower prices. The restructuring and closures are part of the process to improve its financial situation and cut costs.

In 2020, Forever 21 was acquired by a group of investors, who attempted to save the brand. However, the company is still seeking a new owner while grappling with accumulated debt.

The Future of the Stores

Although the company has confirmed certain closures, more stores are expected to close in the coming months. In malls like Westfield Fashion Square in Sherman Oaks and South Coast Plaza in Costa Mesa, there are already closing signs in the windows. However, these stores have not been officially included in the list of closures provided by the company.

Layoffs at Headquarters

The layoffs are not limited to the stores: at Forever 21's Los Angeles headquarters, several executives, including the merchandising director and vice presidents, will also lose their jobs. Additionally, Bradley Sell, the company's chief financial officer, will be laid off. The restructuring is an attempt to cut expenses and ensure the brand's long-term viability.

The History of Forever 21

The Forever 21 brand began in 1984 as Fashion 21 in Los Angeles, founded by husband and wife Do Won and Jin Sook Chang. It quickly grew, and by 2015, the company reported sales of $4.4 billion and operated more than 1,300 stores worldwide. However, financial problems began to arise as competition increased and sales in physical stores declined.

Over the years, the brand has faced controversies. There have been accusations of wage theft and the use of cheap labor abroad. Despite these issues, Forever 21 remains one of the most popular brands among young people.