Is the end of the brick and motor model finally here? For another sign that it is a tough business model we turn to fashion retailer Forever 21 who announced they will be shutting down their Canadian operations. Forever 21 Canada was granted protection under the Companies’ Creditors Arrangement Act by the Ontario Superior Court of Justice in Toronto.
“After considering numerous options, we have made the difficult decision to discontinue operations in Canada. While this decision was not easy to make, we believe it is the right one for Forever 21 Canada. We had hoped for a different outcome, but after years of poor performance and challenges set forth by the headwinds facing the retail industry today, our Canadian operations are simply no longer economically viable,” said Bradley Sell, Chief Financial Officer of Forever 21 Canada.
Forever 21 Canada currently has 44 stores in Alberta, British Columbia, Manitoba, Ontario, Quebec and Nova Scotia and employs approximately 2,000 people. The stores will remain open during the liquidation process.