Forever 21 Reportedly Prepares for Bankruptcy and Store Closures

The retailer plans to shutter at least 200 stores as it explores a shift to an online-focused model, while efforts to secure a buyer remain unresolved.

• Forever 21 is reportedly planning to close at least 200 of its 350 stores and may file for Chapter 11 bankruptcy in the coming days.
• The company has already begun layoffs, including 358 employees at its Los Angeles headquarters, which has been closed, with remaining staff working remotely.
• Efforts to find a buyer for the retailer’s assets have so far been unsuccessful, though talks with one potential bidder are ongoing.
• At its peak, Forever 21 operated over 800 stores worldwide but struggled to adapt to the rise of e-commerce and changing consumer preferences.
• Authentic Brands, which owns Forever 21’s intellectual property, plans to keep the brand alive through licensing and a potential shift to an online-only model.

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