Forever 21 Canada aims to wrap up liquidation process by Nov. 30
Forever 21 Canada plans to begin liquidating its stores next week, pending court approval, and complete the process by November 30, according to documents filed with the Ontario Superior Court of Justice.
The news follows Monday’s announcement that the fast-fashion retailer will shutter all 44 of its Canadian locations and exit dozens of other countries in order to narrow its focus on its domestic U.S. market.
The retailer has selected Gordon Brothers Canada and Merchant Retail Solutions as its third-party liquidators.
The two firms have been involved in some of Canada’s highest-profile liquidations, including Sears Canada, Target Canada, BCBG and Danier Leather.
Forever 21 is blaming its demise in Canada and internationally on a sector-wide slowdown in bricks-and-mortar sales.
But many experts argue many of the retailers’ wounds are self-inflicted.
Observers note the company embarked on an overly-aggressive global expansion starting in 2008, and didn’t adapt to consumers’ increasing preference for more sustainable wares.
The court documents also offer a snapshot into Forever 21 Canada’s finances.
According to the latest Monitor report, the privately-held company booked annual losses since 2014 and had $107.5 million in liabilities as of late June.
Forever 21 plans to spend $172,000 to advertise and promote its liquidation sale, including spending $52,000 for people holding signs near stores.
Gift cards will not be accepted after October 15, but will be accepted on the retailer’s U.S. website.
Nearly 2000 people will lose their jobs as a result of Forever 21’s exit from the Canadian market.