Forever 21 bankruptcy: Close up to 178 stores in the AMERICA

The numbers show the crisis facing traditional retailers. So far this year, publicly traded U.S. retailers have announced they will close 8,558 stores.

NEW YORK: Fashion chain Forever 21 has filed for Chapter 11 bankruptcy protection.

The privately held company based in Los Angeles said Sunday it will close up to 178 stores in the U.S. As of the bankruptcy filing, the company operated about 800 stores globally, including more than 500 stores in the U.S.

The numbers show the crisis facing traditional retailers. So far this year, publicly traded U.S. retailers have announced they will close 8,558 stores and open 3,446, according to the global research firm Core-sight Research. That compares with 5,844 closures and 3,258 openings in all of 2018.

FOREVER 21, said it would focus on maximizing the value of its U.S. stores and shutter certain international locations. Forever 21 plans to close most of its locations in Asia and Europe but will continue operating in Mexico and Latin America.

Forever 21 joins Barneys New York and Diesel USA on a growing list of retailers seeking bankruptcy protection as they battle online competitors. Others, like Payless Shoe Source and Charlotte Russe, have shut down completely.