Another big-name retailer has become the latest major chain to close locations in Oregon and across the country this year.
Forever 21 is closing stores as the fast-fashion retailer’s U.S. operator has filed for bankruptcy for the second time in six years, according to USA Today.
The Los Angeles, California-headquartered company, which at its peak had 500 stores, reportedly plans to close its five Oregon stores among others across the U.S.
According to the Reno Gazette Journal, Forever 21 is set to close its LA corporate office and will lay off more than 350 employees there, according to a Feb. 14-dated Worker Adjustment and Retraining Notification.
Here’s what to know about Forever 21 and the stores closing.
Why is Forever 21 closing some of its locations?
The operator of Forever 21 cited “competition from foreign fast fashion companies,” rising costs and other economic challenges for its decision to file for bankruptcy.
F21 OpCo, the operator of Forever 21, announced the voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware on Sunday. The company said it will begin winding down its U.S. business while searching for a potential buyer for all of its remaining assets.
Forever 21’s U.S. Stores and website will remain open and online as operations shutter, according to F21 OpCo. To pay Forever 21’s employees, the operator said it filed motions with the court that will allow them to use cash collateral for wages and benefits.
“While we have evaluated all options to best position the Company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends,” Brad Sell, chief financial officer of F21 OpCo, said in a news release.
Which Forever 21 stores in Oregon are closing?
Forever 21 is expected to begin closing stores in multiple states, with all five Oregon locations expected to close in April, according to store employees.
Signs on the windows at the Woodburn location advertised items being 40% to 60% off.
The stores closing include:
- Lloyd Center, 1046 Lloyd Center, Suite F112, Portland
- Clackamas Town Center, 12000 SE 82nd Ave., Suite #1129, Happy Valley
- Valley River Center, 293 Valley River Center, Eugene
- Washington Square, 9601 SW Washington Square Road, Tigard
- Woodburn Outlet Mall, 1001 N Arney Road Suite 1000, Woodburn
What’s the future of Forever 21?
Sarah Foss, head of legal at Debtwire and an expert bankruptcy lawyer, told USA TODAY the company’s retail stores closing would “not mean the end of Forever 21” as Authentic Brands Group owns the brand and intellectual property.
“Forever 21 is one of the most recognizable names in fast fashion. It is a global brand rooted in the U.S. with a strong future ahead. Retail is changing, and like many brands, Forever 21 is adapting to create the right balance across stores, e-commerce and wholesale,” Jarrod Weber, global president for lifestyle at Authentic Brands, told USA TODAY in a statement on Monday.
Ginnie Sandoval is the Oregon Connect reporter for the Statesman Journal. Sandoval can be reached at GSandoval@gannett.com or on X at@GinnieSandoval.
