Following its bankruptcy announcement last week, Forever 21 is now planning to start its liquidation sale across Canada.
According to court documents filed with Ontario’s Superior Court of Justice, Forever 21 Canada’s liquidation sale is expected to start by October 8, pending court approval.
The retail company is scheduled to appear in court for a hearing to approve the terms of the liquidation on October 7.
Once the court approves the agreement, the sale is expected to wrap by November 30, although it could be extended or terminated early if needed.
Forever 21 announced its plans to “wind down” its Canadian operations after filing for bankruptcy on September 29.
The company has also filed for bankruptcy in the US, and plans to close all its stores in Canada.
“After considering numerous options, we have made the difficult decision to discontinue operations in Canada,” said Bradley Sell, chief financial officer of Forever 21 Canada. “While this decision was not easy to make, we believe it is the right one for Forever 21 Canada. We had hoped for a different outcome, but after years of poor performance and challenges set forth by the headwinds facing the retail industry today, our Canadian operations are simply no longer economically viable.”
Forever 21 currently has 44 stores in Alberta, British Columbia, Manitoba, Ontario, Quebec, and Nova Scotia and employs approximately 2,000 people.
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Following its announcement in the US, the Company said its intention is to continue to operate the majority of its US and Latin American locations as usual, “providing customers with great service and a curated assortment of merchandise, while exiting the majority of international locations.”
They said that the restructuring will enable the Company to “become a stronger, more competitive enterprise, and a more viable company that is better positioned to prosper for years to come.”
Founded in 1984, Forever 21, Inc., is headquartered in Los Angeles, California, and is known as a fast-fashion retailer of women’s, men’s, and kids’ clothing and accessories.