TORONTO--(BUSINESS WIRE)--Forever 21, Inc. (the “Company”) announced today that it plans to wind down its Canadian business operated by its Canadian subsidiary, Forever XXI ULC (“Forever 21 Canada”). To effect the wind down, Forever 21 Canada today filed for and was granted protection under the Companies’ Creditors Arrangement Act (the “CCAA”) by the Ontario Superior Court of Justice (Commercial List) in Toronto. PricewaterhouseCoopers Inc. was appointed as Monitor in the CCAA proceedings to oversee a full liquidation, once approved by the Court, and the wind-down process.
“After considering numerous options, we have made the difficult decision to discontinue operations in 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,” said Bradley Sell, Chief Financial Officer of Forever 21 Canada.
Forever 21 Canada currently has 44 stores in Alberta, British Columbia, Manitoba, Ontario, Quebec and Nova Scotia and employs approximately 2,000 people. Forever 21 Canada stores will remain open during the liquidation process.
Separately, today the Company announced that it has voluntarily filed for protection under Chapter 11 of the United States Bankruptcy Code to enable a reorganization of its business. The Company’s intention is to continue to operate the majority of its U.S. and Latin American locations as usual, providing customers with great service and a curated assortment of merchandise, while exiting the majority of international locations. This 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.
Materials publicly filed in the CCAA proceedings, including court materials, will be made available on the Monitor’s website at www.pwc.com/ca/forever21.
About Forever 21, Inc.
Founded in 1984, Forever 21, Inc., headquartered in Los Angeles, California, is a fast fashion retailer of women’s, men’s and kids clothing and accessories and is known for offering the hottest, most current fashion trends at a great value to consumers. Forever 21 delivers a curated assortment of new merchandise brought in daily. Forever 21, Inc., through its wholly-owned subsidiary, Forever XXI ULC operates 44 retail stores in premium malls across Canada, selling apparel, accessories, and other products under the Forever 21 and other related brand-names.
Certain matters set forth in this news release, including but not limited to statements with respect to the CCAA application and proceedings, the restructuring process, and the Company’s ability to meet its obligations are forward-looking. These forward-looking statements reflect management’s current views and are based on certain assumptions, including assumptions as to future operating conditions and courses of action, restructuring alternatives, economic conditions, and other factors that management believes are appropriate. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in these statements. These forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.