Company Overview

Forever 21 is reportedly facing severe financial troubles leading to significant layoffs and the possibility of a second bankruptcy filing. The retailer is strategically working towards store closures and reassessing its business model to attract potential buyers as part of its restructuring efforts.

Details of the Layoffs

The company has confirmed plans to reduce its workforce by 358 employees as it closes its headquarters located in Los Angeles’ Fashion District. This decision follows a regulatory filing submitted to the California Employment Development Department (EDD).

The impending layoffs will affect various positions, including:

• Managers
• Designers
• Supply Chain Directors
• Product Development Managers
• Store Operations Managers

Store Closures and Future Plans

In addition to the layoffs, Forever 21 is set to close at least 200 stores across the United States. This proactive step is part of a broader bankruptcy strategy expected to be initiated in March, as reported by various news outlets including Bloomberg and the Los Angeles Daily News.

The company is actively seeking a buyer, which, if successful, could allow it to restructure its operations and continue to function in some capacity. However, without an investor stepping forward, Forever 21 may have to consider liquidation, which would result in the cessation of its business operations altogether.

Industry-wide Job Cuts

The layoffs at Forever 21 are part of a larger trend impacting major corporations across various industries. In 2025 alone, approximately 49,800 positions were eliminated from U.S. companies in January, affecting firms such as:

• Starbucks
• Chevrolet
• Southwest Airlines
• Estée Lauder
• JPMorgan Chase
• CNN
• Kohl’s

These figures underscore the significant employment challenges currently facing the retail and corporate sectors.