NewsLocal News

Actions

San Diego area Forever 21 stores may close under Chapter 11

Low-Cost Apparel Retailer Forever 21 To File For Bankruptcy According To Reports
Posted at 12:52 PM, Oct 01, 2019
and last updated 2019-10-01 19:48:38-04

SAN DIEGO (KGTV) - Clothing retailer Forever 21 announced Tuesday it may close three stores in San Diego County as part of its Chapter 11 bankruptcy restructuring.

The affected locations, which include Fashion Valley, University Towne Center, and Parkway Plaza in El Cajon, could be shut down "pending the outcome of continued conversations with landlords,” according to court documents. Attorneys also said the list of store closures could change pending restructuring efforts.

Forever 21 has 800 stores worldwide and plans to close almost 200.

"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 US," the company said.

The chain was founded in 1984 in a small Los Angeles store by South Korean immigrants Do Won Chang and his wife, Jin Sook. The chain expanded quickly in suburban malls, and catering to young girls and women with a mix of inexpensive basics. The company perfected the fast-fashion model, drawing in customers with its frequently updated mix of clothes than what was offered at department stores or single brands.

CNN contributed to this story.