Forever 21 Files for Bankruptcy

224

OREM, UTAH – Forever 21 is now the largest mall giant to file for bankruptcy. The store has struggled to adapt to shoppers’ wants and the new world of online shopping. The store filed for Chapter 11 bankruptcy on Sunday.

The company says that it will close up to 178 of its more than 800 stores nationwide. Customers are concerned that stores near them are going to close!

“I’m so bummed that locations are closing. I really hope that this location doesn’t close or else I will have to drive super far to go to the next location, and that is just really time consuming. I have shopped at Forever 21 for such a long time, and I’m really worried about the store,” said Karlie Doney.

Forever 21 tried to cut a deal in which its two largest landlords, Brookfield Property and Simon Property, would take an ownership stake.  

Forever 21 uses a lot of mall space with its 800 stores; the nationwide closure of 178 locations would leave big holes at shopping malls.

Negotiations between the retailer, Brookfield, and Simon are considered over for now as negotiations stopped this weekend.

Store closures are not expected to happen in any of the major U-S markets.

The retailer is among the many to fall apart due to the increase of online shopping, which has hurt sales in brick-and-mortar locations.

In Utah, Forever 21 has locations at the University Mall, the Shops at South Town, Fashion Place, City Creek Center, Outlets Park City, and Station Park. 

Print Friendly, PDF & Email