Forever 21 is considering closing its remaining stores as it faces the possibility of a second bankruptcy, according to multiple reports.
The big picture: The retailer has initiated liquidation sales at some U.S. locations.
- After reaching peak operations at about 800 stores globally, Forever 21 saw this number drop to 500 following its initial bankruptcy filing in 2019.
- If a suitable buyer is not found for its remaining 350 stores, Forever 21 may opt to liquidate its entire chain.
- The stores at risk of closure have been experiencing financial losses for an extended period.
- Intellectual property rights, including the brand’s trademark, are owned by Authentic Brands, a brand management company.
Flashback: SPARC Group, a joint venture involving Authentic Brands and Simon Property Group, acquired Forever 21 out of its first bankruptcy in 2019, rescuing it from potential liquidation.
- Currently, Authentic Brands operates as a unit of Catalyst Brands, a new entity resulting from the merger of SPARC Group and JCPenney in January.
