Popular mall retailer closing location for good after 12 years and trying to stay afloat after once declaring bankruptcy

After operating since 2012, a well-known shopping center and fast-fashion business is permanently closing one of its locations.

Since declaring bankruptcy, Forever 21 has had numerous setbacks, including the upcoming shutdown.

After 12 years of business, the Forever 21 in the Cooperhouse Shopping Center in downtown Santa Cruz, California, is scheduled to close.

Before the company closes on January 31, 2025, customers can still fit in some holiday shopping.

The Borders bookshop at the intersection of Pacific Avenue and Soquel Avenue was replaced by the fast fashion retailer.

Given the recent closing of the New Leaf Community Markets store on the other corner, its closure might leave both corners vacant.

Gap and Urban Outfitters are among the only national businesses to operate storefronts on Pacific Avenue after Peet’s Coffee & Tea and Starbucks lost their locations there in recent years.

The shutdown of Forever 21 comes after the chain filed for bankruptcy in 2019 and closed almost 200 stores.

However, the closures weren’t enough to stabilize the company’s finances.

Forever 21 reportedly had trouble negotiating cheaper rent with its US landlords earlier this year.

Due in part to the growing popularity of quick fashion merchants like Shein and Temu, the clothing firm has struggled to compete with them.

RETAIL REGRET

There are other retail chains that are having trouble surviving besides Forever 21.

As more consumers resort to online quick fashion merchants, rivals like Charlotte Russe have also declared bankruptcy in recent years.

Following the closure of hundreds of stores in recent months, Big Lots has announced the imminent closure of 19 more.

Nine states—California, Oregon, Texas, Arizona, Florida, Georgia, Idaho, Nevada, and Washington—will be affected by the round of closures.

“Though most of our stores are profitable, and we are taking every step possible to improve the profitability of all our stores, we will need to close certain locations to ensure that our business operates efficiently and we can continue serving our customers,” said Big Lots.

The chain filed for bankruptcy in September and is set to be acquired by private equity firm Nexus Capital Management LP, which is the reason for the closures.

The acquisition, which involves $707.5 million in financing, is expected to be finished by the fourth quarter of 2024.

According to court filings, Big Lots has accumulated $3.1 billion in debt owed to 5,001 to 10,000 creditors, which is why the restructuring attempts are being undertaken.

Additionally, from the first quarter of 2023 to the first quarter of 2024, the company’s net revenues fell by more than $110 million.

The business attributed this to a decline in customer discretionary expenditure on seasonal goods and furniture.

Additionally, Kohl’s is quietly closing a second location, although customers are unaware of the post-holiday plans.

Additionally, one of the oldest locations in a state is being closed by a chain with 16,000 stores.

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