Forever 21, a trendy, fast-fashion retailer that has long been a mainstay in American malls, is laying off approximately 700 workers as it closes several locations and shutters its headquarters.
The retailer had to file WARN notices in Pennsylvania and California — where the company's soon-to-be closed headquarters is located — ahead of the mass terminations.
According to KTLA, Forever 21 locations in Orange, Riverside, Ontario, Rancho Cucamonga, Montclair, Santa Ana, Lakewood, and Cerritos, California, are all closing. The company's headquarters is located in Los Angeles. Approximately 350 people work at the headquarters, according to Retail Dive.
Layoffs are expected to begin on April 21, according to a WARN notice dated to February 14.
The terminations cover positions ranging from store managers to designers to upper level executives like the company's chief financial and merchandising officers.
Anyone still working with the company will have to work remote due to the closure of the company's headquarters.
Catalyst Brands, the parent company of Forever 21, said the retailer would continue to "explore strategic options while also looking at ways to reduce costs across our operations and optimize our store footprint."
"This decision was not made lightly," a Forever 21 spokesperson told USA TODAY. "And we remain committed to transparency and fair treatment of our employees during this period of transition.”
At the height of its operations, Forever 21 operated at least 800 stores worldwide. Now, the chain operates approximately 350.
The Wall Street Journal reported last month that Forever 21 was exploring the possibility of selling the chain and was considering bankruptcy.
The retailer already filed for Chapter 11 bankruptcy once five years ago. At that time, mall owners Simon Property Group and Brookfield Corporation joined forces with Authentic Brands Groups — a brand development corporation — to buy the trendy clothing outlet out of bankruptcy.
Jamie Salter, the CEO of Authentic Brands, said in 2023 that he believed that buying Forever 21 was "probably the biggest mistake I made."
Forever 21 is one of many U.S. brick-and-mortar businesses struggling to keep afloat amidst rising operating costs and competition from online retailers.
Last month, Joann Fabrics announced it planned to close all of its locations. That announcement comes just a month after the brand filed Chapter 11 bankruptcy.
“This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers and all of the communities we serve,” a spokesperson for Joann said in a statement to the Associated Press. “A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time.”
