As Forever 21 continues to announce store closures across the U.S., the company is set to lay off over 350 employees at its Los Angeles corporate office, which will also be closing. The company’s operating firm revealed plans to eliminate approximately 358 positions and shut down its headquarters in a Worker Adjustment and Retraining Notification (WARN) notice obtained by USA TODAY. The layoffs and closure come as Forever 21 faces financial struggles, particularly in competition with Chinese online retailers like Shein and Temu.
The layoffs, including managerial, design, and supply chain roles, are expected to begin on April 21, with remaining staff working remotely after the headquarters shuts down.
A Forever 21 spokesperson confirmed the decision, emphasizing the company’s commitment to transparency and fair treatment during the transition.
The retailer is also exploring ways to reduce costs and optimize its store footprint.
While the company has not specified how many stores it plans to close, several locations have already been reported to shut down across multiple states, including Connecticut, California, Washington, Pennsylvania, Idaho, and North Dakota. Forever 21’s operating firm also disclosed that it is considering a potential sale of the brand, with bankruptcy remaining a possible option.
Forever 21 previously avoided bankruptcy in 2019 after being bought out of Chapter 11 by a group including Simon Property Group, Brookfield Corporation, and Authentic Brands Group. However, the chain may now be facing liquidation, which would significantly impact shopping malls and employees nationwide.
Despite potential store closures, the brand’s intellectual property remains valuable and could persist even in a liquidation scenario.
