As a part of a potential bankruptcy filing expected next month, fast-fashion retailer, Forever 21 plans to close at least 200 more stores in the US. The company will sell remaining approximately 350 stores. It will opt for a complete liquidation of its US operations if it fails a find a suitable buyer for the company.

At its peak, Forever 21 boasted over 500 stores across the US and 800 globally. According to a representative for Catalyst Brands, the operating company that licenses the Forever 21 brand in the US, they are exploring options, including a potential sale, while also focusing on cost reduction and store footprint optimization.

Sources indicate, some of the targeted stores have been unprofitable for years, with Forever 21 often delaying royalties and rent payments to keep them operational. The Forever 21 trademark and intellectual property are owned by Authentic Brands, which licenses them to Catalyst Brands.

A unit of JCPenney and owner of the Lucky Brand owner, Catalyst Brands acquired the operating company in January. Previously, it was owned by Sparc Group, a joint venture between Authentic Brands and major Forever 21 landlords Simon Property Group and Brookfield Properties, formed after Forever 21's 2019 bankruptcy.

Regardless of the US operating company's fate, Authentic Brands will retain ownership of the Forever 21 brand and intends to license it to other retailers and distributors.