(WTNH) — In a letter to their customers, Forever 21 announced today that they voluntarily filed for Chapter 11 bankruptcy protection.
The company states that the choice allows it to “continue to operate its stores as usual” while reorganizing the business. The steps they take during reorganization are intended to help the company return to profitability.
Filing for bankruptcy does not mean the clothing store brand is going out of business, though they have requested approval to close a number of stores across the United States.
Decisions about which stores will close have not been made yet and are pending the outcome of discussions with landlords. The company expects a “significant number” of their domestic stores to stay open and doesn’t expect to leave any major markets.
According to the Associated Press, the privately held company based in Los Angeles says it will close up to 178 stores. The company once had more than 800 stores in 57 countries.
There won’t be any changes to company policies regarding returns and exchanges and gift cards will still be accepted. Information about Forever 21’s reorganization and restructuring can be found here.