Lights illuminate a Forever 21 before the store opens on Monday, Sept. 30, 2019, at Walden Galleria in Cheektowaga, N.Y. Forever 21 has filed for Chapter 11 bankruptcy protection. The privately held company based in Los Angeles said Sunday, Sept. 20, that it will close up to 178 stores in the U.S. (AP Photo/Bill Sikes)

Forever 21 fashion chain closing all Canadian stores in global restructuring

Up to 178 locations in the United States will also close

Low-price fashion chain Forever 21, a once-hot destination for teen shoppers, will close all 44 of its Canadian stores and up to 178 locations in the United States while restructuring its global business under bankruptcy protection.

The Los Angeles-based company announced Sunday that it had filed for protection under U.S. and Canadian laws and confirmed Monday that it plans an “orderly wide-down” of the entire Canadian business.

“Forever 21 has made the difficult decision to discontinue further financial and operational support for Forever 21 Canada as we reposition the brand and global business to adapt to the current retail environment,” it said in a statement.

The company said it would focus on maximizing the value of its stores in the United States, where it had 500 locations prior to the downsizing.

“All 44 Forever 21 Canada stores in Canada will close before the end of the year and we have plans to liquidate our store inventory in the near term,” the company said in an emailed statement.

“Canadian customers can continue to shop our curated assortment of merchandise on our U.S. website.”

Forever 21 will also close most of its locations in Asia and Europe but will continue operating in Mexico and Latin America.

The numbers show the crisis facing traditional retailers. So far this year, publicly traded U.S. retailers have announced they will close 8,558 stores and open 3,446, according to the global research firm Coresight Research. That compares with 5,844 closures and 3,258 openings in all of 2018.

Coresight estimates the store closures could number 12,000 by the end of 2019.

The Canadian retail scene has undergone similar trends but hasn’t been an exact copy of the United States.

Payless ShoeSource closed its 248 Canadian stores after filing for bankruptcy in February. However, Toys R Us Canada continues to operate as a separate business despite the closure of its American and British counterparts.

Forever 21 was founded in 1984 and, along with other so-called fast fashion chains like H&M and Zara, rode a wave of popularity among young customers that took off in the mid-1990s.

Their popularity grew during the Great Recession, when shoppers sought fashion bargains.

But over the last year or so, fast fashion has fallen out of style. Young customers are losing interest in throw-away clothes and are more interested in buying eco-friendly products. They’re also gravitating toward rental and online second-hand sites like Thredup, where they see clothes worn again instead of ending up in a landfill.

These trends are happening while discounters like Target have spruced up their fashion assortments, stealing away customers.

Forever 21 has also been more vulnerable than some other chains because of its large footprints in major malls, which are attracting fewer shoppers.

ALSO READ: How long to save up for down payment in Vancouver? One study says 52 years

— With files from The Canadian Press in Toronto.

The Associated Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Two new bridges to be built along Highway 16 between Port Clements, Tlell

Ministry of Transportation says $5.4-million project expected to be complete in fall 2020

‘Now Is the Time’ doc will start streaming on National Indigenous Peoples Day

Film featuring Haida carver Robert Davidson will launch June 21 for free on NFB website

Haida Gwaii couple frustrated after Air Canada cancels flight, denies compensation

Mike Racz says another passenger received $1,000 while he was only offered e-coupon and promo code

Haida Gwaii teachers heading back to empty classrooms on June 1

SD50 working with CHN following May 21 request to keep school closed until state of emergency lifted

COVID-19 highlights lack of connectivity in First Nations communities

Many don’t have access required to utilize online platforms, says First Nations Technology Council

VIDEO: Green Coast offers free kayaking to Haida Gwaii residents

First “pop-up paddle” held Monday, May 25; free community paddles expected to continue weekly

Feds looking at ways to reunite families amid COVID-19 border restrictions with U.S.

Some families with members of dual-citizenship have become separated due to the pandemic

Condition in kids with possible COVID-19 link being studied in Canada

This month, the U.S. Centers for Disease Control and Prevention issued an alert to doctors about MIS-C

‘I knew what he wanted’: Kootenay man spends hours in tree as black bear patrols below

Francis Levasseur is no stranger to the outdoors, but a recent run-in with a bear caused quite a scare

COVID cancelled their wedding plans, so they married on a BC mountaintop

Ceremony was live streamed to friends and family around the world

Introducing the West Coast Traveller: A voyage of the mind

Top armchair travel content for Alaska, Yukon, BC, Alberta, Washington, Oregon and California!

Trudeau acknowledges racial unrest in U.S.; ‘We also have work to do in Canada’

‘Anti-black racism, racism, is real; it’s in the United States, but it’s also in Canada,’ Trudeau says

State of Local Emergency declared for Boundary as communities brace for river flooding

Warm weather and heavy rain could cause sections of Kettle River system to swell beyond 2018 levels

Large cruise ships barred from Canadian waters until end of October: Garneau

Last year 140 cruise ships brought more than two million visitors to Canadian ports

Most Read