Forever 21 Announces Layoffs and Store Closures Amid Bankruptcy Process
FILE: A shopper enters a Forever 21 store in Anne Arundel, Maryland. (Eric Lee/Bloomberg via Getty Images)
Forever 21 is preparing to lay off approximately 358 employees as the retailer anticipates a second bankruptcy filing. As part of this process, the fashion retailer intends to shutter at least 200 of its U.S. locations.
Details on Layoffs
According to a report from the Los Angeles Daily News, the layoffs will affect various roles, including managerial positions, designers, and heads of supply chain and product development. The company’s headquarters in Los Angeles will close permanently, with layoffs scheduled to begin on April 21 and continue through May 5, as outlined in the company’s notice to California’s Employment Development Department (EDD).
Bankruptcy Filing Insights
As reported by Bloomberg, Forever 21 is expected to initiate a bankruptcy process in March. The closure of over 200 stores is part of the strategy to restructure the company. Efforts are underway to find a potential buyer which could allow the brand to continue operating in some form. However, should these efforts fail, the retailer may face complete liquidation of its remaining 350 locations.
Broader Implications of Job Cuts
The trend of layoffs is not unique to Forever 21. In 2025 alone, major companies such as Starbucks, Chevrolet, and CNN have announced significant job cuts, contributing to a staggering total of nearly 49,800 jobs lost in January 2025 alone, as reported by Challenger, Gray & Christmas. This ongoing wave of layoffs underscores broader challenges within various sectors.
Source Attribution
The information in this article is derived from multiple reputable sources, including Newsweek, Reuters, Bloomberg, and the Los Angeles Daily News.
