Forever 21, Pier 1: Bad News For 2 Major Retailers In Temecula
TEMECULA, CA — It looks like not everything lasts forever. The retail chain Forever 21 is expected to close up to 178 stores in the United States, and the home decor store Pier 1 could close up to 145 of its own locations.
Forever 21 announced it has filed for Chapter 11 bankruptcy in a letter to customers on Sept. 29.
The teenage clothing store made it clear, though, it wasn't going out of business, and instead filed for bankruptcy protection as a "deliberate and decisive step to put us on a successful track for the future," according to the letter.
The two companies a growing list of brick-and-mortar establishment that have seen a nosedive in revenue and popularity with the emergence of e-commerce companies such as Amazon and Walmart.
"We are confident this is the right path for the long-term health of our business," Forever 21 said in the letter to customers. "Once we complete a reorganization, Forever 21 will be a stronger, more viable company that is better positioned to prosper for years to come."
Neither chain has yet specified the locations that will be closed, but for now, nothing is off the table.
Here in Temecula, a Forever 21 is located at 40820 Winchester Road, suite 1050, near the Promenade Mall.
Pier 1 is just down the road, at 26415 Ynez Road.
Forever 21 saw its revenue decrease to $3.3 billion last year, which is down from the $4.4 billion in 2016, according to the New York Times. The company has also laid off more than 10,000 people since 2016.
The home goods store Pier 1 has been dealing with its own recent troubles. It had to close 30 stores at the end of its fiscal year in March of 2019, and the number of closures could now increase up to 15 percent of their outlets.