All Canadian locations of popular U.S.-based retail chain Forever 21 will soon be shut down, after an announcement on Sunday.
On the same day, the company filed for bankruptcy in the United States “to enable a reorganization of its business”.
In Canada, Forever 21 will be performing a full liquidation of its stores under the eye of PwC Canada who was appointed as Monitor in the proceedings.
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“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,” said Bradley Sell, CFO of Forever 21 Canada.
“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.”
The company currently operates 44 stores in Alberta, British Columbia, Manitoba, Ontario, Quebec and Nova Scotia and employs approximately 2,000 people.
Their statement on Sunday confirmed that all of these stores will remain open during the liquidation process.
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After closure, Canadian shoppers can still order Forever 21 merchandise from their website.
Notwithstanding their troubles in international markets, Forever 21 plans to continue operating the majority of their U.S. and Latin American locations.
“This restructuring will enable the Company to become a stronger, more competitive enterprise, and a more viable company that is better positioned to prosper for years to come,” reads the statement.
