Latest news with #BradSell
Yahoo
12-05-2025
- Business
- Yahoo
Forever 21 completes Springfield store closure in U.S. shutdown
SPRINGFIELD, MO – Trendy clothing retailer Forever 21 is wrapping up its operations across the U.S. as part of its sudden bankruptcy just weeks ago. In recent days, the company completed the closure of its Battlefield Mall location. Customers will notice the signage is gone, the doors are locked, and paper covers the windows. Forever 21 filed for Chapter 11 bankruptcy in late March and announced it planned to close all of its 354 U.S. stores in early May. The retailer explained it had problems competing in the post-pandemic retail landscape. In an announcement to customers, Brad Sell, Chief Financial Officer of F21 OpCo, LLC, stated, ' After careful deliberation, we have made the decision to file for chapter 11 bankruptcy protection under chapter 11 of the U.S. Bankruptcy Code. We are deeply grateful for the support you have shown us over the years, but rising costs and increased competition from abroad have made our current business model unsustainable.' In recent weeks, signs went up outside the Battlefield Mall store announcing that the store was closing and clearance sales were underway to reduce inventory. Forever 21 was partly owned by the mall's owner, Simon Property Group. In 2019, Simon joined Authentic Brand Group to purchase Forever 21 in hopes of keeping it alive. The Springfield store closure creates a large vacancy for one of the larger spaces in the mall. Two other anchor locations in the mall are set to become empty later this summer when Dillard's moves its two separate (men's and women's) stores into a combined spot at the former Sears building. Battlefield Mall has said it will announce plans for those two storefronts sometime in the future. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
06-05-2025
- Business
- Yahoo
Why did Forever 21 go out of business? What to know in Michigan
Forever 21 is gone forever in Michigan and nationwide as the chain's bankruptcy moves forward. As malls and the once-popular fast-fashion retailer have declined, Forever 21 struggled financially amid global competition from online retailers, leading the company to file Chapter 11 bankruptcy and close all U.S. stores this spring. In Michigan, the nine stores at malls across the state were set to have closed permanently as of May 1. "On behalf of the Company, I'd like to express our deep appreciation for the hard work of our dedicated employees and their commitment to our customers. We are also grateful for the many years of support from our partners and our loyal customers, who have allowed us to serve as a fashion industry leader and go-to retailer for generations," Chief Financial Officer Brad Sell said in the bankruptcy announcement. Here's what to know. When did Forever 21 stores close? All Michigan Forever 21 stores were set to close by May 1, 2025, according to court documents. The Forever 21 website was still up as of Monday, May 5. What is Forever 21? Forever 21 is a fast-fashion retail chain selling men's and women's clothing, accessories and more. Will Forever 21 continue to honor gift cards? Forever 21 stopped accepting gift cards and store credit on April 15, USA TODAY reported. Will Forever 21 offer refunds? Refunds and exchanges are also no longer available. Where were Michigan's Forever 21 stores? Forever 21 operated the following nine stores in Michigan: Briarwood Mall in Ann Arbor: 602 Briarwood Circle, D101A Great Lakes Crossing Outlets in Auburn Hills: 4160 Baldwin Road The Mall at Partridge Creek in Clinton Township: 17360 Hall Road No. 191 Fairlane Town Center in Dearborn: 18900 Michigan Ave. Woodland Mall in Grand Rapids: 3195 28th St. SE Twelve Oaks Mall in Novi: 27434 Novi Road The Crossroads Mall in Portage: 6650 S. Westnedge Ave., No. 139 Southland Center in Taylor: 23000 Eureka Road Space, No. 1360 Oakland Mall in Troy: 460 W. 14 Mile Road When did Forever 21 file for bankruptcy? Forever 21 filed for Chapter 11 bankruptcy March 16, 2025. Why did Forever 21 file for bankruptcy? The company had been facing financial challenges amid competition from Chinese online discount retailers such as Shein and Temu. Forever 21 had previously announced store closings, the closure of its Los Angeles headquarters and layoffs of more than 350 employees, USA TODAY reported. USA TODAY contributed. Contact Jenna Prestininzi: jprestininzi@ This article originally appeared on Detroit Free Press: Forever 21 gone forever in Michigan as stores close
Yahoo
20-03-2025
- Business
- Yahoo
Forever 21 stores could close by May, court filings show
Forever 21 has declared bankruptcy for a second time and expects to close over 350 stores in the United States and Puerto Rico by May 1, unless the business is purchased by a new buyer, court filings show. F21 OpCo, LLC, the company and licensee of the brand in the U.S., filed a Chapter 11 case in the U.S. Bankruptcy Court for the District of Delaware this week. "The company may pivot away from a full wind down of operations to facilitate a going concern transaction. If there is an actionable going concern proposal that warrants stopping ongoing store closing sales, the company will exercise its business judgment and determine the appropriate course of action," a spokesperson for the fast-fashion retailer told ABC News. Brad Sell, the chief financial officer of F21 OpCo, LLC, cited international competitors and growing costs among the reasons behind Forever 21's downturn in a press release Sunday. "While we have evaluated all options to best position the Company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends," Sell said in part. "As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders." Sell's mention of a de minimis exemption refers to a congressional law that allows for imported products under $800 to enter the U.S. without any duties, tariffs or taxes, according to the International Trade Administration, an agency within the U.S. Department of Commerce. In court filings, Forever 21 further cited direct competitors Shein and Temu, who it said take advantage of de minimis exemptions. "Certain non-U.S. online retailers that compete with the Debtors, such as Temu and Shein, have taken advantage of this exemption and, therefore, have been able to pass significant savings onto consumers. Consequently, retailers that must pay duties and tariffs to purchase product for their stores and warehouses in the United States, such as [Forever 21], have been undercut," the company wrote in part in its filing. Once a staple at American malls, Forever 21, which was founded in 1984, was at its peak a customer favorite and a market disruptor for its low-cost and trendy clothing options. The company filed for bankruptcy back in 2019 and found a buyer when Authentic Brands Group teamed up with Simon Property Group and Brookfield Property Partners to purchase the brand in 2020. Forever 21 mulls declaring bankruptcy amid troubles The new development comes despite a resurgence in nostalgic retail shopping and amid speculation in late February that the retailer would declare bankruptcy for a second time and close hundreds of U.S. stores. "[Forever 21] continues to explore strategic options, including a potential sale … the efforts are ongoing and no final decisions have been made," a Forever 21 spokesperson told ABC News at the time. Return of retail nostalgia ABC News has reached out to Shein and Temu for comment. Forever 21 has over 540 store locations globally. Its international stores are unaffected by the bankruptcy filing as they remain operated by other licensees. Editor's note: This article has been updated to include the most recent information from Forever 21's bankruptcy court proceedings. Forever 21 stores could close by May, court filings show originally appeared on
Yahoo
19-03-2025
- Business
- Yahoo
Forever 21 to close all NY stores amid bankruptcy filing
All Forever 21 stores, including those in New York, are set to close by May 1 as the retailer's operator filed its second bankruptcy in six years, USA TODAY reported. F21 OpCo, the operator of Forever 21, announced the voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware on Sunday and legal counsel for F21 OpCo said during a hearing on Tuesday that the company anticipates to vacate its approximately 354 leased stores by the end of April, a spokesperson for the fast fashion retailer told USA TODAY. According to court records, the company plans to complete all store closing sales before May 1, with many closing before April 1. Once the closing sales are complete, the stores will close, the spokesperson noted. "On behalf of the company, I'd like to express our deep appreciation for the hard work of our dedicated employees and their commitment to our customers," Brad Sell, chief financial officer of F21 OpCo, said in a news release. "We are also grateful for the many years of support from our partners and our loyal customers, who have allowed us to serve as a fashion industry leader and go-to retailer for generations.' Here's what to know. The chain, which sells trendy styles for young men and women at low prices, has struggled to compete with Chinese online discount sites Shein and Temu. Jamie Salter, the CEO of Authentic Brands, the fast fashion retailer's brand and intellectual property owner, spoke during a conference last year and said Forever 21's partnership with Shein, which came to be in 2023, only yielded modest results, according to Retail Dive. Salter said before Authentic Brands and mall owners, Simon Property Group and Brookfield Corporation, saved Forever 21 from bankruptcy five years ago, he "didn't see Shein" and "didn't see Temu," per Retail Dive. The CEO added that he and his partners decided to partner with Shein because their "supply chain is too good" and they knew they could not "beat them." Sell, the CFO of F21 OpCo, said foreign fast fashion companies take advantage of the de minimis exemption, which allows shipments of items valued at or under $800 to enter the U.S. duty-free and with very little paperwork. This exemption helps Chinese online retailers, such as Shein and Temu, keep clothing prices markedly low. President Donald Trump halted his administration's repeal of the exemption in February after the rapid change created disruptions for customs inspectors, postal and delivery services and online retailers. According to the bankruptcy court filing from March 17, all 21 stores in New York are being considered for closure. The move is pending court approval. Here's which New York locations are on the list: Staten Island: Staten Island Mall, 2655 Richmond Ave., Suite 1040 Valley Stream: Green Acres Mall, 2034 Green Acres Mall, Space #108 Bayshore: South Shore Mall, 1701 Sunrise Highway, #D10 West Nyack: Palisades Center, 3510 Palisades Center Drive, Suite G307 Victor: Eastview Mall, 7979 Pittsford-Victor Road, Suite #140 Poughkeepsie: Poughkeepsie Galleria, 2001 South Road, #181 Yorktown Heights: Jefferson Valley Mall, 650 Lee Blvd., #D118 Middletown: Galleria at Crystal Run, 1 Galleria Drive, Space #D207 Glendale: The Shops at Atlas Park, 80-40 Cooper Ave., Suite #4-002 Niagara Falls: Fashion Outlets of Niagara Falls, 1965 Fashion Blvd., Suite 238 Riverhead: Tanger Outlets Riverhead, 200 Tanger Mall Drive, Suite 201 Lake Grove: Smith Haven Mall, 313 Smith Haven Mall, Space #M05 Yonkers: Cross Country Center, 8040 Mall Walk Brooklyn: Kings Plaza Shopping Center, 5301 Kings Plaza, #210 Garden City: Roosevelt Field, 630 Old Country Road Deer Park: Tanger Outlets Deer Park, 152 The Arches Circle, Suite 924 New York City: Seventh Avenue — Penn Station, 435 Seventh Ave. Central Valley: Woodbury Premium Outlets, 223 Red Apple Court, Space #0223 White Plains: The Westchester, 125 Westchester Ave. Buffalo: Walden Galleria, 1 Walden Galleria, #TH110 New York City: Times Square, 1540 Broadway Forever 21 closure: Store specializing trendy, thrifty fashions is closing at Eastview Mall Forever 21's operator will look for a buyer of the retailer's assets, but until then, its stores will remain open and business will commence as usual, USA TODAY reported. To pay employees, the operator said it filed motions with the court that will allow them to use cash collateral for wages and benefits. Forever 21 stores being in malls across the U.S. past May will depend on whether F21 OpCo can find a buyer. Although the Forever 21 stores may be closing, Authentic Brands owns the retailer's brand and plans to continue evolving the business. "Forever 21 is one of the most recognizable names in fast fashion. It is a global brand rooted in the U.S. with a strong future ahead. Retail is changing, and like many brands, Forever 21 is adapting to create the right balance across stores, e-commerce and wholesale," Jarrod Weber, global president for lifestyle at Authentic Brands, told USA TODAY in a statement on Monday. Weber said that the company's "licensee's decision to restructure its operations does not impact Forever 21's intellectual property or its international business." "It presents an opportunity to accelerate the modernization of the brand's distribution model, setting it up to compete and lead in fast fashion for decades to come," he said. See the list: Joann auctioning all NY store leases amid bankruptcy Yes, for a short period. Forever 21 plans to take gift cards for the first 30 days of its bankruptcy, according to bankruptcy court documents, which will be through April 15. Contributing: Mississippi Clarion Ledger reporter Bonnie Bolden and USA Today Network Emily Barnes reports on consumer-related issues for the USA TODAY Network's New York Connect Team, focusing on scam and recall-related topics. Follow her on X and Instagram @byemilybarnes. Get in touch at ebarnes@ This article originally appeared on Rochester Democrat and Chronicle: Forever 21 to close all NY stores amid bankruptcy filing
USA Today
19-03-2025
- Business
- USA Today
Forever 21 files for bankruptcy, second time in 6 years for fast-fashion retailer
Forever 21 files for bankruptcy, second time in 6 years for fast-fashion retailer Forever 21's U.S. locations and website will stay open and online as the company's operations wind down. Show Caption Hide Caption Is Amazon Concerned About Temu and Shein? the online shopping race is on and it looks like Temu and Shein are gaining on Amazon. According to a report from The Wall Street Journal, the Bezos helmed online retailer is now more concerned with the newer online platforms than they are of Walmart and Target. Cheddar The operator of Forever 21 has filed for bankruptcy for the second time in six years, citing "competition from foreign fast fashion companies," rising costs and other economic challenges. F21 OpCo, the operator of Forever 21, announced the voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware on Sunday. The company said it will begin winding down its U.S. business while searching for a potential buyer for all of its remaining assets. Forever 21's U.S. Stores and website will remain open and online as operations shutter, according to F21 OpCo. To pay Forever 21's employees, the operator said it filed motions with the court that will allow them to use cash collateral for wages and benefits. According to local reports, Forever 21 locations had begun closing locations in several states, including Connecticut, California, Washington state, Pennsylvania, Idaho and North Dakota. Last month, the company disclosed its plans to lay off about 358 employees and shut down its headquarters in Los Angeles, California. 'While we have evaluated all options to best position the Company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends," Brad Sell, chief financial officer of F21 OpCo, said in a news release. "As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders," Sell said. Here's what to know about Forever 21's recent bankruptcy filing. Why did Forever 21 file for bankruptcy? One of the primary reasons for Forever 21's bankruptcy filing is competition from Shein and Temu, something the head of Authentic Brands, the fast fashion retailer's brand and intellectual property owner, seemingly forecasted a year ago. Jamie Salter, the CEO of Authentic Brands, spoke during a conference last year and said Forever 21's partnership with Shein, which came to be in 2023, only yielded modest results, according to Retail Dive. Salter said before Authentic Brands and mall owners, Simon Property Group and Brookfield Corporation, saved Forever 21 from bankruptcy five years ago, he "didn't see Shein" and "didn't see Temu," per Retail Dive. The CEO added that he and his partners decided to partner with Shein because their "supply chain is too good" and they knew they could not "beat them." Sell, the CFO of F21 OpCo, said foreign fast fashion companies take advantage of the de minimis exemption, which allows shipments of items valued at or under $800 to enter the U.S. duty-free and with very little paperwork. This exemption helps Chinese online retailers, such as Shein and Temu, keep clothing prices markedly low. President Donald Trump halted his administration's repeal of the exemption in February after the rapid change created disruptions for customs inspectors, postal and delivery services and online retailers. What's next for Forever 21? Forever 21's operator will look for a buyer of the retailer's assets, but until then, its stores will remain open and business will commence as usual. And while going-out-of-business sales have not been announced, Forever 21 is advertising some significant discounts, with its online storefront currently offering up to 80% sitewide and up to 70% on select styles. "On behalf of the Company, I'd like to express our deep appreciation for the hard work of our dedicated employees and their commitment to our customers," Sell said in the release. "We are also grateful for the many years of support from our partners and our loyal customers, who have allowed us to serve as a fashion industry leader and go-to retailer for generations.' Sarah Foss, who is head of legal at Debtwire and an expert bankruptcy lawyer, also pointed out to USA TODAY that the company's retail stores closing would "not mean the end of Forever 21" as Authentic Brands Group owns the brand and intellectual property. "Forever 21 is one of the most recognizable names in fast fashion. It is a global brand rooted in the U.S. with a strong future ahead. Retail is changing, and like many brands, Forever 21 is adapting to create the right balance across stores, e-commerce and wholesale," Jarrod Weber, global president for lifestyle at Authentic Brands, told USA TODAY in a statement on Monday. "Our U.S. licensee's decision to restructure its operations does not impact Forever 21's intellectual property or its international business," Weber said. "It presents an opportunity to accelerate the modernization of the brand's distribution model, setting it up to compete and lead in fast fashion for decades to come." Additionally, Weber said Authentic Brands will look to "take the brand to the next level" by building a direct creation-to-shelf model that will accelerate production cycles and "deliver the best products at the best prices." He added that the company has received a lot of interest from brand operators and digital experts to move forward with this strategy. Contributing: Reuters
