As shoppers begin to make more conscious decisions about what and where they buy, fast fashion retailers are starting to feel the impact.
One retailer, in particular, that has been struggling to stay afloat is Forever 21. Earlier this year, Bloomberg reported that the company was looking to restructure its debt. Negotiations with possible lenders had been stalled, which left us wondering what the future had in store for the Los Angeles-based retailer.
And the future has just been revealed.
Forever 21 recently announced that it will be closing all of its Canadian locations.
There are 44 Forever 21 stores closing across the country, including locations in Toronto, Vancouver, Edmonton, Montreal, and more. According to Retail-Insider, Forever 21 will be closing close to 880,000-square-feet of retail space in Canada.
“After considering numerous options, we have made the difficult decision to discontinue operations in Canada. While this decision was not easy to make, we believe it is the right one for Forever 21 Canada.”
Chief Financial Officer of Forever 21 Canada, Bradley Sell
“We had hoped for a different outcome, but after years of poor performance and challenges set forth by the headwinds facing the retail industry today, our Canadian operations are simply no longer economically viable,” said Forever 21’s Chief Financial Officer of Forever 21 Canada, Bradley Sell.
Forever 21 stores will stay open during the liquidation process.
But while Forever 21 stores are closing in Canada, the retailer plans to remain open in the U.S. and Latin America. The Canadian closures will affect approximately 2000 people who work for the company.
Retail-Insider reports that, overall, Forever 21 wasn’t performing well in Canada. According to its sources, most stores were bringing in less than $3 million annually, with some stores bringing in less than $2 million annually.
Canadian stores will likely close on different dates according to leases, but will be open leading up to the holidays. CBC News reports that all 44 Forever 21 stores in Canada will close before the end of the year.
Stay tuned for more updates on the closures.