Forever 21 is approaching closing its stores forever.
The struggling mall flagship — selling $7 T-shirts, $12 dresses and $25 sneakers — has been on the verge of filing for bankruptcy after the flounder came. Bloomberg.
The first fashion brand with 350 locations is owned by licensing company Authentic Brands Group, but stores, e-commerce and manufacturing are run by an entity called F21 OPCO.
The latter is a Catalyst branded unit that runs JCPenney, Aeropostale, and Eddie Bauer.
The source cited by Bloomberg said it operates more than 500 locations in the US, operates at least 800 locations worldwide, and is preparing to close all 350 stores in at least 800 locations worldwide.
This is the second time the 41-year-old has filed bankruptcy protection as the 41-year-old company faces tough competition from Chinese competitors like Temu and Shein.
In 2020, the retailer was acquired for $81 million by the largest mall landlord, a consortium run by Jamie Salter, a consortium made up of Simon Property Group Brookfield and ABG.
A source with knowledge of the situation said Salter still posted that he could head straight with China's First Fashion Darlings Tem and Shane by hiring a new design team and signing a manufacturing transaction that speeds up production.
Salter is in discussions with factories overseas, sources added.
One scenario being discussed by stakeholders will leave around 100 stores open in “high locations with customer traffic,” insiders said.
Another source not involved in the talk said that the 100 stores are “inefficient numbers, which means it is expensive to source products below a small number of locations.”
ABG declined to comment.
In 2023, Shein joined the Forever 21 ownership group.
