Forever 21, a popular clothing store, will shut down three shops in Kansas City, Missouri. This decision came shortly after the company almost went bankrupt. Jamie Salter, the CEO of Forever 21, has said that buying the company was a mistake he regrets.
Forever 21's New Closures After Bankruptcy
In 2020, Forever 21 faced tough times and filed for Chapter 11 bankruptcy. However, it found a new start when Authentic Brands Group, Simon Property Group, and Brookfield Property Partners bought it for $81 million.
During the bankruptcy process, the company closed several stores, including its locations at the Plaza and Legends Outlets. Now, workers at these stores and the Independence Center location have shared with the Kansas City Business Journals that these shops will also be closed in the next few months.
A worker from the Plaza store mentioned that their store is expected to close by the end of March. But, if everything in the store sells quickly, it might close even sooner.
Holly Solomon, in charge of marketing and leasing at Independence Center, hasn't shared the exact date the Forever 21 store will close. However, she mentioned plans to replace it with businesses related to healthcare, education, and offices in the future.
As for the Legends Outlet, there hasn't been any official word on the closure of their Forever 21 store.
With these changes, the Kansas City area will have only two Forever 21 stores left. According to the company's website, Forever 21 operates 540 stores worldwide, with 397 in the United States.
Also Read: Macy's Announces Closure of 5 Stores in 2024, Cutting Costs Amid Economic Challenges
Forever 21's Turnaround Hope with Shein
After taking over Forever 21, CEO Jamie Salter admitted in a January interview with Retail Dive that buying the company might have been his biggest mistake. Despite this, Salter remains optimistic about Forever 21's collaboration with Shein, believing it could significantly improve the company's fortunes.
In October 2023, Forever 21 and Shein made their partnership official, planning to work together long-term. This agreement involves Shein designing, creating, and distributing a new clothing and accessories line that will carry both brands' names.
Shein's contribution to Forever 21 is precious. The company is known for its leading-edge, on-demand production model that reduces excess stock. This approach could offer Forever 21 a fresh start and a more efficient way of operating.
Meanwhile, the Three Forever 21 stores set to close soon offer everything at half price. At the Plaza location, a two-story building with 30,000 square feet that opened in 2010, red signs saying "everything must go" are visible in the windows.
This Plaza store, located at 111 Nichols Road, was previously home to Mark Shale and Swanson's. Not far from there, another women's clothing shop, Soft Surroundings, also recently shut its doors.
Holly Solomon, who oversees leasing at Independence Center, shared that the Forever 21 store at 18801 E. 39th St. is scheduled to close by the end of March.
Shannon O'Brien, a spokesperson for Legends, has confirmed that the Forever 21 store at 1843 Village West Parkway is closing. However, the exact date when the store will shut its doors is still uncertain.
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