Days after it filed for bankruptcy, Forever 21 has announced that three of its Utah locations could close by the end of the year.
The clothing retailer's stores at the City Creek Center in Salt Lake City, The Shops at South Town in Sandy and the Tanger Outlets in Park City are on a list of 178 locations that may close unless Forever 21 is able to negotiate lower rent on the properties. The company released a statement that it expects “a significant number of these stores will remain open and operate as usual.”
Forever 21 also operates stores at three other Utah locations — Fashion Place in Murray, Station Park in Farmington,, and the University Mall in Orem — that are not on the list of possible closures.
The company, which operates 500 stores in the United States, filed for Chapter 11 bankruptcy reorganization. According to a statement, it has no plans to go out of business.
“We are confident this is the right path for the long-term health of our business,” the statement read. “Once we complete a reorganization, Forever 21 will be a stronger, more viable company that is better positioned to prosper for years to come.”
Forever 21 also has about 300 stores in other countries. Company executives said they plan to pull out of most locations in Asia and Europe but will continue to operate in Mexico and Latin America.