Forever 21, the prominent fast-fashion retailer, is preparing to shutter approximately 200 additional stores as it approaches a potential second bankruptcy filing, which could occur as early as next month.
This move comes as the company struggles to find a suitable buyer for its remaining operations; without one, the entire chain of around 350 stores may face liquidation.
Notably, many of the stores slated for closure have been unprofitable for years.
The Forever 21 brand is currently owned by Authentic Brands Group (ABG), which licenses it to the operating company F21 OpCo.
F21 OpCo was recently acquired by Catalyst Brands, a conglomerate that also oversees retail names like Aéropostale and Eddie Bauer.
Catalyst Brands is managed by shareholders including Simon Property Group, Brookfield Corporation, ABG, and the online retailer Shein.