Forever 21 has filed for chapter 11 bankruptcy and will close dozens of U.S. stores.
The fashion retailer said its Canadian subsidiary was granted bankruptcy protection as well. The company will use the protections to begin global restructuring.
Forever 21 says it will be able to restructure thanks to $350 million in financing from its lenders.
Forever 21 Executive Vice President Linda Chang said, "We are confident we will emerge as a stronger, more competitive enterprise that is better positioned to prosper for years to come, and we remain committed to delivering the fast fashion trends that our customers have come to expect from Forever 21."
As part of its restructuring, it's "requested approval to close a number of stores" in the U.S. Multiple outlets say that number is about 178 U.S. stores and up to 350 total worldwide. Forever 21 has more than 800 stores in 57 countries.
As Newsy has previously noted, fast-fashion retailers like Forever 21, Wet Seal and Aeropostale have struggled to keep physical stores open as younger customers shift their focus from mall visits to online shopping.
In a letter posted on its website, Forever 21 reassured customers that stores will continue to operate as usual and the retailer will continue to honor gift cards, returns and exchanges.