Forever 21 Store Closures: Retailer Pulls Out Of Japan

Following the announcement by Forever 21 to its customers that addressed reports of a bankruptcy filing, the retailer will reportedly close all of its stores in Japan. The store closures affect 14 stores in the country.

According to the Japan Times, Forever 21 will go forward with the store closures by the end of October as it faces increasing competition from online clothing retailers. No reason was given by the company for the closures, the news outlet said.

In August, media reports suggested the retailer was looking to file for Chapter 11 bankruptcy protection. The company posted a letter to its customers in response to the media reports saying it wanted to “shed some light and correct misinformation.”

Forever 21 said it was “business as usual” for the company and its global stores were open. The company also said it was “working hard to make some changes to how our organization is structured to strengthen Forever 21 for the future.”

The retailer did hint that its international store base may shrink with a statement that read, “our intention is to continue to operate the vast majority of US stores, as well as a smaller amount of international stores.”

Forever 21 took up shop in Tokyo’s popular Harajuku district in 2009. The store was closed in 2017. The company does have other stores located throughout Japan, including the cities of Yokohama and Osaka.