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

Town of Castor to open tenders to replace garbage truck

Council decided to purchase a used rear load garbage truck to replace the existing the one

Alberta confirms 29 new COVID-19 cases

Of the total 6,955 confirmed cases, 652 are active

Town council moves to re-open community playgrounds

Highlights from the Town council meeting of May 25th

Stettler area brothers put creative skills towards superb causes

Clay and Porter Kneeland are constructing hydro-dipped birdhouses

VIDEO: Procession to honour Snowbirds Capt. Jennifer Casey comes to Halifax

Snowbirds service member died in a crash in Kamloops one week ago

More hospitals part of plasma transfusion trial to treat COVID-19 with antibodies

More hospitals part of plasma transfusion trial to treat COVID-19 with antibodies

Brazilians say ‘I do’ at drive-thru weddings to avoid virus

Brazilians say ‘I do’ at drive-thru weddings to avoid virus

Cases going down, but experts urge against visiting grandparents during pandemic

Cases going down, but experts urge against visiting grandparents during pandemic

One dead, four hurt in head-on crash on one-way street in Edmonton

One dead, four hurt in head-on crash on one-way street in Edmonton

NDP mocks Alberta premier’s UCP for taking COVID cash from ‘sugar daddy’ Trudeau

NDP mocks Alberta premier’s UCP for taking COVID cash from ‘sugar daddy’ Trudeau

Alberta introduces bill to change rules on charter schools, home-schooling

Alberta introduces bill to change rules on charter schools, home-schooling

Opposition parties call on Liberals to restore human-trafficking victims fund

Opposition parties call on Liberals to restore human-trafficking victims fund

‘Antigone’ wins five trophies, including best picture, at Canadian Screen Awards

‘Antigone’ wins five trophies, including best picture, at Canadian Screen Awards

Most Read