Forever 21 reportedly closing HQ and laying off workers
The troubles continue for embattled fast-fashion retailer Forever 21.
The retailer, which has been reportedly considering filing for bankruptcy and planning to close 200 stores as its efforts to find a buyer for its U.S. leases have come up short, is now said to be preparing for a closure of its downtown Los Angeles headquarters and layoff of more than 350 corporate staffers.
According to the Los Angeles Daily News, Forever 21 filed a regulatory letter known as a Worker Adjustment and Retraining Notification (WARN) with the California Employment Development Department on Tuesday, Feb. 18, 2025 stating that it would begin laying off 358 employees at its corporate headquarters on Monday, April 21, 2025 and conclude the process on Monday, May 5, 2025.
The notice also stated that Forever 21 will close its Los Angeles headquarters building and all remaining employees who work there will continue to perform their jobs remotely.
“Forever 21’s operating company, which is the brand licensee in the U.S., continues to explore strategic options while also looking at ways to reduce costs across our operations and optimize our store footprint,” a Forever 21 spokesperson said in a statement to the Los Angeles Daily News.
“As part of this review, we have started the process of issuing WARN notices to employees who may be affected, in compliance with applicable legal requirements,” the spokesperson said in the statement. “This decision was not made lightly, and we remain committed to transparency and fair treatment of our employees during this period of transition.”
Companies are required to file WARN notices when they plan to lay off more than 50 employees or a significant portion of their staff.
Forever 21 faces long-term challenges
Forever 21 filed for Chapter 11 bankruptcy protection in September 2019, with a plan to close some 178 stores. It was later acquired by a group that that included Authentic Brands Group and landlords Simon Property Group and Brookfield Property Partners.
[READ MORE: Forever 21 files for bankruptcy; closing up to 178 U.S. stores]
The formerly high-flying company has struggled in recent years, amid increased online competition, particularly from Chinese budget retailers Shein and Temu, and the rising popularity of resale among teen shoppers.
The reports of the second possible bankruptcy come months after CNBC reported that Forever 21 was asking landlords to cut its rent by as much as 50% in some locations in an effort to control costs.
