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A POPULAR mall and fast-fashion retailer is shuttering one of its stores for good after being open since 2012.
The impending Forever 21 closure is just one of many setbacks the company has faced since filing for bankruptcy.
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The Forever 21 in the Cooperhouse Shopping Center in downtown Santa Cruz, California, is set to close after 12 years of operation.
Customers can still squeeze in some holiday shopping before the retailer’s last day on January 31, 2025.
The fast fashion retailer replaced the former Borders bookstore at the corner of Soquel Avenue and Pacific Avenue.
Its closure could potentially leave both corners empty, as the New Leaf Community Markets’ store on the opposite corner recently shut down.
Peet’s Coffee & Tea and Starbucks have also closed their Pacific Avenue locations in recent years, leaving Gap and Urban Outfitters as some of the last national chains with stores on the avenue.
The Forever 21 closure follows the chain’s bankruptcy filing in 2019 when it shuttered around 200 locations.
The closures, however, were insufficient in financially stabilizing the company.
Earlier this year, it was reported that Forever 21 struggled to negotiate lower rent with its US landlords.
The apparel company has had difficulty competing with other fast fashion retailers such as Shein and Temu as they grow more popular, contributing to its hardships.
RETAIL REGRET
Forever 21 isn’t the only chain in the retail space struggling to stay afloat.
Competitors such as Charlotte Russe have similarly filed for bankruptcy in recent years as an increasing number of shoppers turn to online fast fashion retailers.
Big Lots has announced the impending closure of 19 more stores after shuttering hundreds over the past few months.
The slew of closures will span nine states, including California, Oregon, Texas, Arizona, Florida, Georgia, Idaho, Nevada, and Washington.
“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,” shared Big Lots.
Big Lots Locations Closing
The 19 Big Lots locations slated to close are:
Arizona
- 3543 West Thunderbird Road, Phoenix
California
- 4751 White Lane, Bakersfield
- 25260 Madison Avenue, Murrieta
- 1815 West Slauson Avenue, Los Angeles
- 1675 Hillman Street, Tulare
- 1207 Aviation Boulevard, Redondo Beach
Florida
- 2544 East Colonial Drive, Orlando
- 111 Racetrack Road NW, Fort Walton Beach
Georgia
- 3358 Chamblee Tucker Road, Atlanta
Idaho
- 100 East Fairview Avenue, Meridian
Nevada
- 1300 Disc Drive, Sparks
- 7781 West Tropical Parkway, Las Vegas
Oregon
- 1350 Ne Stephens St Ste 50, Roseburg
- 930 South Highway 395, Hermiston
- 1070 Biddle Road, Medford
Texas
- 23741 Highway 59 Ste 30, Porter
- 3715 Colony Drive, San Antonio
- 1201 West Nasa Parkway, Webster
Washington
- 813 North Stratford Road, Moses Lake
The shutters are the result of the chain’s bankruptcy filing in September and impending acquisition by Nexus Capital Management LP, a private equity firm.
The acquisition is projected to be complete by the fourth quarter of 2024 and includes $707.5 million of financing.
The restructuring efforts come as Big Lots has accumulated $3.1 billion in debt owed to 5,001 to 10,000 creditors, per court documents.
The company’s net sales also dropped significantly by over $110 million from Q1 in 2023 to Q1 in 2024.
The company blamed a decrease in consumer discretionary spending in categories such as furniture and seasonal items.
Kohl’s is also quietly closing another location, but shoppers aren’t in the loop about post-holiday plans.
Plus, a chain with 16,000 stores is closing one of its oldest-ever locations in a state.
