Layoffs hit Forever 21 ahead of reported bankruptcy filing

Forever 21 is the latest company to announce layoffs as the retailer braces for a reported second bankruptcy filing. 

The company plans to close at least 200 stores in the U.S. as it works toward finding a potential buyer and financial restructuring, the Los Angeles Daily News reported, citing Bloomberg. 

Forever 21 layoffs

Local perspective:

Forever 21 is set to layoff 358 people as it closes its Fashion District headquarters in Los Angeles, the Los Angeles Daily News reported, citing the company’s regulatory filing with California’s Employment Development Department (EDD). 

These layoffs include managers, designers, supply chain directors and managers of product development and store operations. 

RELATED: 2025 layoffs: List of companies cutting jobs this year

The company’s Chief Financial Officer Bradley Sell wrote in a Feb. 18 letter filed with EDD that employees at the Forever 21 headquarters would be laid off permanently starting April 21 and continuing through May 5, according to a federal Worker Adjustment and Retraining Notification.

Forever 21 bankruptcy filing 

The backstory:

The U.S.-based operator of Forever 21 will close at least 200 more locations from the retailer’s store base as part of a bankruptcy process that’s expected to start in March, the Los Angeles Daily News reported, citing Bloomberg.

Forever 21 is looking for a buyer and if they can find one, the company may be able to restructure and remain operational in some capacity. 

RELATED: Starbucks laying off more than 1,000 corporate employees

But if an investor isn’t found, Forever 21 may face to liquidation, meaning the business would come to an end, Newsweek reported, citing Reuters. However, if an investor isn’t found, Forever 21 would liquidate the entirety of its 350-store chain.

Layoffs happening at other companies

Why you should care:

Tens of thousands of job cuts have already occurred so far in 2025 at major companies like Starbucks, Chevrolet, Southwest Airlines, Estée Lauder, JPMorgan Chase, CNN, and Kohl’s. Moreover, nearly 49,800 jobs were cut from U.S. companies in January, according to a Feb. 6 report from Challenger, Gray & Christmas.