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Forever 21 Lays off 350 workers, Closes LA Headquarters amid Struggles

Merchandising

Business Honor
08 March, 2025

Forever 21 to lay off 350 workers, close headquarters, and consider bankruptcy sale.

Forever 21's operating business informed USA TODAY in a Worker Adjustment and Retraining Notification (WARN) letter that it will be closing its headquarters and will be laying off about 358 employees.

When businesses conduct mass layoffs, a WARN letter dated February 14 states that layoffs are expected to start on April 21. A number of managers, designers, supply chain directors, and the company's chief finance and chief marketing officers are among those laid off, according to the announcement. After the corporate office closes, those who are still working for the company will switch to working remotely.

In a statement to USA TODAY, a Forever 21 representative said the choice was taken after giving it considerable thought. The company's dedication to openness and treating workers fairly throughout the transition was underlined by the spokeswoman. The company is looking into methods to cut expenses and maximize its retail space, according to the statement.

Forever 21 faced bankruptcy and possible closure (liquidation) five years ago. But when Simon Property Group and Brookfield Corporation, two significant mall owners, joined forces with Authentic Brands Group, a multinational firm that specializes in brand development, it was safe from this destiny. Together, they were able to rescue Forever 21 from bankruptcy, preventing the store from going out of business.

Though closures have already been reported in many states this month, Forever 21 has not disclosed the number of stores it intends to close. However, local news sources report that a number of Forever 21 shops nationwide, including those in Connecticut, California, Washington state, Pennsylvania, Idaho, and North Dakota, have already made plans to close.

It is to be noted that closing the company's retail locations would "not mean the end of Forever 21" because the brand and intellectual property belong to Authentic Brands Group, which might not be included in a possible bankruptcy liquidation.