Forever 21 to Unleash Big Retail Footprint on U.S. Landlords

Prime mall and power center real estate will be unlocked with the store closures. Who will step up to absorb the space? 
Forever 21 store-closing sales begin
More than 350 Forever 21 stores around the country are in the process of liquidating. PHOTO COURTESY OF HILCO CONSUMER RETAIL.
THE EDIT. Click to hide summary.
  • 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.

Shein pop-up in Ontario at the Ontario Mills Forever 21
Shein’s pop-up shop inside Forever 21’s store at Ontario Mills in 2023. The pop-ups were an attempt to test how the two brands could work together and leverage each’s strengths. PHOTO BY VERNON PROPER.

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

Vernon Proper: fashion without the fluff. Business news and analysis.

Subscribe

Vernon Proper: Fashion without the fluff. Stay up to date on West Coast business news and analysis with our weekly newsletter.

Be First to Comment

What do you think? Let's start a conversation.

This site uses Akismet to reduce spam. Learn how your comment data is processed.