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- Forever 21 is liquidating over 350 stores after filing for bankruptcy again, citing inflation, changing consumer preferences and competition from fast-fashion giants like Shein and Temu.
- Major store closures are happening across the U.S., including 45 locations in California, with discounts of 40 percent to 60 percent.
- Landlords face challenges in filling large retail spaces, as Forever 21’s exit adds to broader retail struggles for some.
The liquidation of Forever 21 stores is set to unload thousands of square feet into the retail market in the coming weeks and months, leaving landlords to scramble and fill the space.
Forever 21, which filed for bankruptcy earlier this month, tapped Hilco Consumer Retail, Gordon Brothers and SB360 – typically behind most liquidation sales of troubled retailers – to handle the store closures.
The company’s co-chief restructuring officer Stephen Coulombe in court documents blamed several factors on Forever 21’s latest troubles. This is the business’ second go at bankruptcy after reorganizing under Chapter 11 in 2019.
Inflationary pressures, shifting consumer trends and more favorable tax benefits for overseas fast-fashion companies such as Shein and Temu were blamed for Forever 21’s demise. Many have cried foul over the Shein and Temu’s use of the de minimis tax exemption that allows imports valued at $800 or less to be free from duties and tariffs.
Over 350 Forever 21 locations are holding closing sales, with inventory marked down by as much as 40 percent to 60 percent. In California, 45 stores are liquidating with some set to close at month’s end.
Meanwhile, the company’s online shop is also holding a closing sale.
The first quarter of the year has so far shaped up to be a tough one for some companies.
Forever 21’s bankruptcy comes a month after Liberated Brands filed for Chapter 11 in early February. The former licensee of RVCA, Quiksilver, Roxy, Volcom and other surf and skate brands also blamed macroeconomic factors for its troubles.
CA Forever 21 Stores Slated for Closure
Stonewood Center, Downey
Ontario Mills, Ontario
Moreno Valley Mall, Moreno Valley
Northridge Fashion Center, Northridge
415 Parkway Plaza, El Cajon
2249 Stoneridge Mall Road, Pleasanton
2200 Eastridge Loop, San Jose
Great Mall, Milpitas
72840 Highway 111, Palm Desert
343 Southland Mall Drive, Hayward
Sherman Oaks Fashion Square, Sherman Oaks
20 City Boulevard West, Orange
24201 W. Valencia Blvd., Valencia
3251 20th Ave., San Francisco
630 Ventura Blvd., Camarillo
Promenade in Temecula, Temecula
8155 Arroyo Circle, Gilroy
13000 Folsom Blvd., Folsom
1695 Rutherford Street, Tulare
3620 Livermore Outlets Drive, Livermore
Outlets at the Pike, Long Beach
2693 Countryside Drive, Turlock
Beverly Center, Los Angeles
Del Amo Fashion Center, Torrance
2800 N. Main St., Santa Ana
Hollywood & Highland, Los Angeles
Plaza Bonita, National City
Valley Fair, Santa Clara
Fox Hills, Culver City
350 W. Hillcrest Drive, Thousand Oaks
West Covina Shopping Center, West Covina
395 Santa Monica Place, Santa Monica
888 W. 2nd St., Calexico
Montebellow Town Center, Montebello
Lakewood Center Mall, Lakewood
Los Cerritos Center, Cerritos
Inland Center, San Bernardino
Fresno Fashion Fair, Fresno
Valley Plaza, Bakersfield
Galleria at Tyler, Riverside
Shops at Mission Viejo, Mission Viejo
400 S. Baldwin Ave., Arcadia
Sun Valley Mall, Concord
South Coast Plaza, Costa Mesa
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