Closing forever 21 in 12 other stores in the Bay region – The Mercury News

The fast fashion retailer Forever 21 closes more stores in the Bay region, dismissing hundreds of employees in the process.

Store closings coincide with the closing of the current head office in Los Angeles, where 358 people lose their jobs.

Helved by the fall in sales and the increase in competition from electronic commercial merchants abroad, the 41 -year -old company went bankrupt in 2019, closing at least 21 stores in California at the time. After decades of family ownership, the retail chain was sold in 2020 to investors, who are now looking for a new owner for the brand.

Local store closures and dismissals reported to the state include:

– Stoneridge Mall, 2249 Stoneridge Mall Rd., Pleasanton, Ca

– Eastridge Mall, 2200 Eastridge Loop, San Jose, CA

– Southland, 343 Southland Mall Drive, Space # 76, Hayward, CA

– Stonestown Galleria, 3251 20th Ave., Space # 136, San Francisco, Ca

– San Francisco Premium Outlets, 3620 Livermore Outlets Drive, Livermore, CA

– Valley Fair, 2855 Stevens Creek Blvd, Unit # 2522, Santa Clara, CA

– Sun Valley, 329 Sun Valley Mall, Suite # 121, Concord, CA

– Gilroy, 8155 Arroyo Circle # 1, Gilroy, CA

In the letters submitted to the California employment development service, the company said that layoffs and store closings were permanent, from April 25 and continuing until May 9.

Employees, who include managers, sales partners and supervisors, were informed at the end of February, said the letter.

Companies that put an end to a large number of employees must subject a notification of adjustment and recycling of workers to the state. Forever 21’s letters were all signed by the financial director of the company Bradley Sell, which is also dismissed when the headquarters are closed.

The company, with 58 stores in California, announced in February that it would close at least 200 stores nationally, part of a bankruptcy process that is looking for a buyer. If no buyer advances, Forever 21 will likely the 350 stores and more, according to Bloomberg.

The job cuts at the Los Angeles headquarters include Masako Konishi, director of merchandising, and a handful of vice-presidents, his general lawyer, his information and planning and allowance technologies. Other layoffs include managers, designers, supply chain directors and product development managers and store operations.

The retailer made his debut as mode 21 in Los Angeles in 1984, launched by Mari and Wife Do Won and Jin Sook Chang. The first store opened on Figueroa Street. The retailer would be renamed forever 21 and would become a national brand known for his fashionable and inexpensive clothes for adolescents and 20 years. At its peak in 2015, the company declared $ 4.4 billion in sales and 1,300 stores worldwide.

Over the years, the company has faced numerous controversies, including payroll accusations, the use of cadmium in its jewelry, controversial slogans on t-shirts and cheap labor used abroad to sew its clothes.

Forever 21 assets were sold bankrupt for $ 81 million in 2020 to a group of investors, including Authentic Brands Group, Simon Properties and Brookfield Properties. This group, known as Sparc, had a number of retail brands, including Lucky, Eddie Bauer, Aeropostal, Brooks Brothers and Nautica before its acquisition.

In January, SPARC said that he merged with JCPENNEY, creating a new group called Catalyst Brands. In particular, the list of brands under the Banner Catalyst does not include forever 21. Instead, the company said that it was looking for a new operator for the retailer.

Today, rapid fashion in the United States has been overwhelmed with competition from Chinese electronic commercial companies such as Tamu and Shein, which produce and sell articles for money.