Low-price fashion chain Forever 21, a once-hot destination for teen shoppers that fell victim to its own rapid expansion and changing consumer tastes, has filed for Chapter 11 bankruptcy protection.
The embattled clothing retailer said today it doesn’t expect to close its Chattanooga store at Hamilton Place mall as its works its way through the bankruptcy reorganization.
Mall owner CBL Properties said that while it has 20 Forever 21 stores in its nationwide portfolio, it doesn’t anticipate “significant closures.”
“We’ve been monitoring the situation with Forever 21 closely, so today’s announcement does not come as a surprise,” said Stacey Keating, CBL’s director of public relations and corporate communications.
Forever 21, which caters to teen-agers, said it is planning to close between 300 and 350 stores, including as many as 178 in the United States. The company, which currently has 549 US stores and 251 in other countries, will continue to operate in Mexico and Latin America.