Forever 21’s three UK stores, located in London, Liverpool and Birmingham, will close in the New Year, after it fell into administration.
Damian Webb and Allan Kelly of RSM Restructuring Advisory LLP were appointed as joint administrators of Forever 21 UK Ltd on 30 September, after the parent company in the US filed for Chapter 11 bankruptcy.
The administrators have confirmed that Forever 21’s three UK stores will immediately commence a £30m stock-clearance Sale. Seasonal stock is currently being delivered and stock will be replenished throughout the winding-down period with new lines added frequently.
“The decision by Forever 21 to file for Chapter 11 bankruptcy in the US has regrettably led to the UK company being placed into administration”, Damian Webb, a retail restructuring partner at RSM UK, said.“”Despite the parent company’s financial difficulties across its worldwide estate, the Forever 21 brand has remained very popular with shoppers, and we are anticipating huge interest in this closing down sale. Visitors to Forever 21’s UK stores in London, Liverpool and Birmingham can expect to see some very attractive prices from the outset.”
A Forever 21 spokeswoman said: “Forever 21 can confirm that we have filed for Administration in the U.K. Following discussions with our administrator, Forever 21 has made the decision to discontinue its locations in the U.K.”
Founded in 1984, Forever 21 has around 800 stores in 57 countries. As part of its restructuring strategy, the company plans to exit most of its international locations in Asia and Europe, but will continue operations in Mexico and Latin America. It expects to have between 450 and 500 stores globally after this process, according to media reports. Forever 21 closed its Chinese online business in April and only Dublin store last year.