(WAND) - Fashion chain Forever 21 has filed for Chapter 11 bankruptcy protection.
The chain that caters mainly to teenage customers will close up to 178 stores in the U.S.
The company said it would focus on maximizing the value of its U.S. stores and close 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.
"The decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords," it said in the statement. "We do, however, expect a significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the U.S."
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 Coresight Research. In 2018 there were 5,844 closures and 3,258 openings.
Officials said part of the reason for stores like Forever 21 suffering is young customers are losing interest in cheaper clothes that may be lower on quality and are more interested in buying eco-friendly products and gravitating toward rental and online second-hand sites like Thredup, where they see clothes worn again instead of ending up in a landfill.
