When a retail chain dies, it tends to be a slow, drawn-out affair.
You almost never see a chain die quickly. Instead, it happens in stages that often end in a dramatic death scene where a last-minute recovery still seems possible.
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The last few weeks for a retail chain that’s going out of business often seem like the final minutes in the life of Anakin Skywalker/Darth Vader.
In that scene, Luke, his recently-discovered son, drags the Sith lord toward a shuttle after Vader had saved the young Jedi from Emperor Palpatine’s Force Lightning. They don’t quite make it, but the dying bad guy has time for a little more drama on the ramp of the shuttle.
He asks Luke to remove his helmet so he can look upon his son with his own eyes. Luke points out that doing that will kill him, Vader says it’s inevitable, and Star Wars fans get the long-awaited Darth Vader without his helmet shot.
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Yes, the fact that he looks like a neon-white Humpty Dumpty saps some of the emotion, but for a science fiction film, it was a very dramatic moment.
Another such moment is the death of Forever 21. It may not impact the balance of good and evil in the universe, although it will significantly impact the supply of T-shirts with sassy slogans on them.
Forever 21 stores are already being liquidated.
Image source: Bloomberg/Getty
Forever 21 nears the end (maybe)Â
For a few months, Forever 21 did the “will they/won’t they” file bankruptcy dance before finally filing on March 16. At the time of the filing, the company shared that it planned to wind down operations at its U.S. stores.
“Wind down” wasn’t just being used because it sounds nicer than “liquidate.” The owners, F21 Opco, retained hope that a buyer might emerge. The company has reached a Plan Support Agreement (PSA) with its lenders that will determine the chain’s next steps.
That was explained in a press release:
The PSA is designed to enable the company to move through the Chapter 11 process as quickly and efficiently as possible. Through the PSA and the Chapter 11 proceedings, the company will conduct liquidation sales at its stores while simultaneously conducting a court‑supervised sale and marketing process for some or all of its assets.
Company also will file a motion with the court seeking authority to market F21 OpCo’s assets through an auction pursuant to section 363 of the Bankruptcy Code. In the event of a successful sale, the company may pivot away from a full wind down of operations to facilitate a going-concern transaction. The company believes this dual-path process will best maximize optionality and value.
Basically, the owners have to shut the chain down but remain hopeful that a buyer will step in.
It’s now a month later, and no buyer has publicly stepped up. That means there are some dates fans of the retail chain need to know.
Forever 21 fans need to know these dates
Once Forever 21 began its going-out-of-business sales, all sales, both in U.S. stores and on its U.S. website, became final.Â
“Accordingly, we will no longer be accepting returns or exchanges. Additionally, at this point, we are no longer offering new gift cards or credit cards,” the chain shared.
If you have a gift card, you’re running out of time to use it. April 15 is the last day gift card will be accepted by Forever 21.
The company shared in a court filing that it expects to vacate roughly 354 leased stores by the end of April.
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No public statement has been made on specific store closing dates. Instead, Forever 21 has directed customers to two different locations:
“For the most up-to-date information, please visit our store locator, and you can also find your favorite merchandise at www.forever21.com,” it shared.
The chain’s bankruptcy and liquidation (or “wind-down”) process only impacts its U.S. operations. Forever 21 stores outside of the U.S. will continue to operate business as usual.
