Forever 21 has announced filing for bankruptcy and will close up to 178 stores in the U.S., according to the New York Times.
The company spoke to customers in a statement, revealing “decisions as to which domestic stores will be closing is ongoing, pending the outcome of continued conversations with landlords.”
The drop in store availability is not expected to impact any major markets.
“We do…expect a significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the U.S.,” the company wrote.
“What we’re hoping to do with this process is just to simplify things so we can get back to doing what we do best,” said Linda Chang, the chain’s executive vice president.
The bankruptcy will cause a restructuring that will stop operations in Canada, Japan, and 38 more countries. The total amount of stores that will close is 350.