Monday 21 October 2019

Cuts in store: Forever 21 latest US retail victim

Under pressure: Fast-fashion retailer Forever 21 is poised to close up to 178 of its stores in the US market
Under pressure: Fast-fashion retailer Forever 21 is poised to close up to 178 of its stores in the US market

Fashion chain Forever 21 has filed for Chapter 11 bankruptcy protection, and said it will close up to 178 stores in the US.

The company operated about 800 stores globally, including more than 500 in the US.

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It pulled out of the Irish market last year, shutting its only store in the Jervis Centre in Dublin, but only after racking up losses here of €44m.

Forever 21 had invested more than €10m alone in fitting out the Dublin store.

In the UK, Forever 21 has stores in Oxford Street in London, Liverpool and Birmingham.

The company said it would look to focus on maximising the value of its US stores.

It plans to close most of its locations in Asia and Europe, but will continue operating in Mexico and the rest of Latin America.

"The decisions as to which domestic (US) stores will be closing are ongoing, pending the outcome of continued conversations with landlords," it said in a statement.

"We do, however, expect a significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the US."

Stock-market-listed US retailers have announced they will close 8,558 stores and open 3,446, according to research firm Coresight.

Irish Independent

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