• Forever 21 operators have filed for bankruptcy protection
• Dozens of job cuts slated for New York City stores

The operator of Forever 21 fast-fashion stores in the U.S., which include locations in West Nyack, White Plains, Yonkers, and Yorktown locations, said it has filed for bankruptcy protection and is moving to wind down its U.S. business.

F21 OpCo operates 350 Forever 21 stores in the U.S. 

A news release said the company will do liquidation sales at stores and a court‑supervised sale and marketing process for some or all of its assets. The company also will file a court motion seeking authority to market F21 OpCo’s assets through an auction.

“In the event of a successful sale, the company may pivot away from a full wind down of operations to facilitate a going-concern transaction.” The release said the company commenced Chapter 11 cases in U.S. Bankruptcy Court for the District of Delaware.

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Forever 21’s operator will look for a buyer of the retailer’s assets, but until then its stores will remain open and business will commence as usual, USA TODAY reported. Going-out-of-business sales have not been announced, but Forever 21 is advertising some discounts, with its online storefront offering up to 80% sitewide and up to 70% on select styles.

“While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends,” Brad Sell, F21 OpCo chief financial officer, said in a news release. “As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders.”

Sell added: “We are also grateful for the many years of support from our partners and our loyal customers, who have allowed us to serve as a fashion industry leader and go-to retailer for generations.”

New York City locations announce layoffs

A WARN notice, notifying of job cuts within New York state was issued for Forever 21 locations in New York City, affecting 27 jobs at one location and 72 at the other.

One primary reason for Forever 21’s bankruptcy filing is competition from Shein and Temu, something the head of Authentic Brands, the fast fashion retailer’s brand and intellectual property owner, seemingly forecasted a year ago, USA TODAY reported.

It is the second time in six years, citing “competition from foreign fast fashion companies,” rising costs and other economic challenges.

Contributing: USA TODAY