Forever 21 filed for Chapter 11 bankruptcy protection Monday, adding its name to the growing list of traditional retailers that are unable to compete with changing shopping habits and larger online rivals.
Forever 21 will close around 178 U.S. stores, the company said, and will wind-down businesses in Canada and Japan as well. It will still have more than 600 U.S. stores if it is able to exit the Chapter 11 restructuring, however, and plans to continue operations in Mexico and Latin America.
"This was an important and necessary step to secure the future of our Company, which will enable us to reorganize our business and reposition Forever 21," said Forever 21 vice president Linda Chang.
"With support from our key landlord and vendor constituents, we are confident we will emerge as a stronger, more competitive enterprise that is better positioned to prosper for years to come, and we remain committed to delivering the fast fashion trends that our customers have come to expect from Forever 21," she added.
Forever 21 is one of more than 20 U.S. retailers that have filed for bankruptcy protection since 2017, with names such as Sears Holdings and Toys R Us, as well as Payless Shoe Source, the Limited and Diesel.