FARGO — The Forever 21 store at the West Acres Shopping Center is closing.
Signs announcing the pending closure have been hung from the rafters, declaring that everything in the store was 10% to 40% off. “Store Closing” and “Total inventory blowout,” declare the signs.
At the checkout area, customers of the fast fashion shop were reminded Sunday, Feb. 23, that all sales were final. “No returns” a sign said.
Store employees, who declined to be named, said they were informed just before Valentine’s Day of the company’s intent to close the Fargo store.
Fargo’s Forever 21 is on the east side of the mall, in the Aquarium Court area next to the CRAVE American Kitchen and Sushi Bar.
Chris Flynn / The Forum
The Forum recently emailed a person identified as a Forever 21 district manager, but has received no response.
Bloomberg reports that the U.S.-based operator of Forever 21 Inc. is preparing to close at least 200 more locations in the U.S. as part of a bankruptcy process expected to start next month.
Bloomberg’s sources said if no qualified buyer emerges, Forever 21 would liquidate all of its nearly 360 stores in the U.S. (The company’s website listed 359 stores as of Sunday evening, Feb. 23, with one store apiece in North Dakota, South Dakota and Minnesota.)
Forever 21’s website said it has more than 540 locations worldwide, as well as its online presence.
Alissa Adams, chief operating officer for West Acres Development, said the mall was informed that Forever 21 “is exploring strategic options for the future of the brand including a potential sale. We have been told they’re looking to reduce costs and optimize their store footprint.”
She added in a texted statement that “it is our understanding that they do not have a final decision on the outcome of their stores and ultimately if/how many stores may close.”
Adams said a source within the brand relayed to her that Sparc Group announced in January that it was “pursuing strategic alternatives for F21. The process is ongoing and the preferred outcome is the sale of the operations.
“However, there is a possibility that this does not occur. F21 intends to comply with applicable law and regulation; as such, WARN notices will be issued where required in the event we need to close stores,” Adams said she was told.
Chris Flynn / The Forum
A WARN notice is a written notification that employers must provide to employees before a mass layoff, plant closure, or relocation. The Worker Adjustment and Retraining Notification Act requires the notice to be made 60 days in advance.
Forever 21 is part of Catalyst Brands after a merger of Sparc Group and JCPenney in January of this year.
Other brands in Sparc Group that are now part of Catalyst include Eddie Bauer, Aeropostale, Brooks Brothers, Lucky Brand, and Nautica.
