Forever 21’s parent company, F21 OpCo, recently said in a release that it plans to close its U.S. stores. The news comes after the clothing and accessories retailer filed for bankruptcy protection for a second time. However, if the company can find a potential buyer for its assets, it may stay open.
In a statement, Brad Sell, the company’s chief financial officer, said Forever 21 could not compete with the low prices offered by online retailers like Shein and Temu. These companies can take advantage of the de minimis exemption, which waives tariffs and customs procedures on imported items worth less than $800.
“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,” Sell said.
The current plan is for Forever 21 stores to hold liquidation sales, and the website will continue to run while operations wind down. There are currently six Northern Virginia store locations, including Arlington, Fairfax, Leesburg, Springfield, Woodbridge, and the Dulles Town Center.
Dollar General Closing Stores
In addition, Dollar General announced in an earnings report that it plans to close 96 of its U.S. stores.
“As we look to build on the substantial progress we made on our Back to Basics work in fiscal 2024, we believe this review was appropriate to further strengthen the foundation of our business,” said Todd Vasos, Dollar General’s chief executive officer. “While the number of closings represents less than one percent of our overall store base, we believe this decision better positions us to serve our customers and communities.”
Dollar General operates nearly 500 stores in Virginia, including in Alexandria, Ashburn, Stafford, and Woodbridge. The company has not announced which stores will be closing.
The news by Forever 21 and Dollar General come on the heels of other major U.S. retailers recently announcing store closings. They include Party City and Joann.
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