Forever 21, the teenage fast-fashion chain, has filed for bankruptcy. The company said in a press release that it’s planning to restructure its global business closing between 300 and 350 stores. As many as 178 of the store closures will occur in the U.S.
The company also plans to close “most” of its international locations in Asia and Europe. Forever 21, which currently has 549 US stores and 251 abroad, will continue to operate in Mexico and Latin America.
In a letter to customers, Forever 21 asserted that it’s not going out of business, but is hoping that filing for bankruptcy will put them on track for a more successful future. The letter went on to state,
As part of our filing, we have requested approval to close a number of stores across the U.S. The decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords. We do however expect a significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the U.S.
Forever 21 has reassured its customers that they will not see any changes in remaining stores. Gift cards will continue to be accepted, and all policies, including returns and exchanges, will remain the same.