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.

Just Posted

Flaming pumpkins set to fly in Summerland

The annual Flamin’ Pumpkin Chunkin’ takes place at Saxon Estate Winery

FOODIE FRIDAY: The Black Antler’s ‘something-for-everyone’ menu offers spins on the classics

Owner Dan Prokosh called Penticton a perfect fit for their vision

Naturewise: Planting and caring for nature’s future

Stewards help preserve shrinking habitats

Cannings endorsed by David Suzuki

South Okanagan-West Kootenay NDP candidate loading up on endorsements

First aid for mental health coming to Penticton for veterans, families

The course runs Oct. 28 & 29 at the Penticton Trade & Convention Centre

Spotlight on B.C.: Liberals need at least 10 B.C. ridings to take the election

Black Press Media presents a four-part series into how B.C. will affect the federal election outcome

Valley First feeds a big Okanagan need

Feed the Valley succeeding in fighting hunger

Famous Forgeries displayed by Okanagan Artists of Canada

Okanagan Artists of Canada prepare for 75th anniversary with 75-year-old art

Sign, sign, everywhere a sign

MITCHELL’S MUSINGS: Election brings a colourful array of elections signs

Vernon man arrested with meat cleaver pleads not guilty to cop assault

Kyle Frances Larue allegedly assaulted RCMP with bear spray, meat cleaver

On the campaign trail: North Okanagan photographer gets up close to MP candidates

Salmon Arm’s Kristal Burgess produced photo essays for fourShuswap-North Okanagan candidates

Morning Start: The whale known as Moby Dick

Your morning start for Friday, Oct. 18

Wood pellet supply a concern for Salmon Arm business

Prices increase after Pinnacle Renewable Energy steps away from bag sales

Kawhi Leonard, former Toronto Raptor, welcomed back to Vancouver at pre-season game

Fans go wild at pre-season game between L.A. Clippers and Dallas Mavericks at Rogers Arena

Most Read