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

COVID-19: Tla-o-qui-aht First Nation asks Tofino businesses for support as emergency funding runs dry

“We need to pay for the work they do. It’s such important work.”

DFO says the five aggrieved B.C First Nations were consulted on fisheries plan

Nuu-chah-nulth First Nations calls response ‘a sham,’ adding DFO never incorporates their views

Three active COVID-19 cases on Vancouver Island

Since July 24, Central island has had five new cases, North one, South none

Canada can lead the way to save sharks from extinction, says fisheries expert

“Combined with fishing extraction numbers, sharks experience huge losses in the environment.”

Five Vancouver Island First Nations call out Canada for ‘discriminatory’ food fish practices

West Coast nations say government ignoring court-won right to chinook and coho

B.C. records new COVID-19 death, 85 more cases; Horgan calls on celebrity help

This brings the total number of active confirmed cases to 531 across the province

Old-growth forest defenders in Campbell River call for B.C. forest minister’s resignation

Protestors outside North Island MLA’s office ask government to stop old-growth logging

Teachers to get 2 extra days to prepare for students’ return, now set for Sept. 10

Students will first start with orientation and learn rules of COVID-19 classroom policies

High-volume littering at Cape Scott draws ire from hiking groups

Popular Vancouver Island hiking spot not closing, but frustration about crowding grows

SFU to drop ‘Clan’ varsity team name

The ‘Clan’ name is shortened from ‘Clansmen,’ and was introduced roughly 55 years ago

New Tory leader must build a strong team in Commons and for the campaign: Scheer

Scheer marked his final day in the House of Commons today as leader of the Opposition

B.C. to hire 500 more COVID-19 contact tracers ahead of fall

Contract tracers add an ‘extra layer’ in the fight against the novel coronavirus

More than $800,000 in suspected cocaine seized from ship near Victoria

RCMP Dive Team suspects more narcotics had been stored below ship’s waterline

Feds commit $305M in additional funds for Indigenous communities during COVID-19

Money can be used to battle food insecurity and support children and mental health

Most Read