Forever 21 to close HQ at Brookfield’s CMC

Beleaguered Forever 21 may not be forever–and it definitely does plan to close its headquarters in Downtown Los Angeles.

The apparel retailer will shutter its share of a fashion hub at the California Market Center at 110 East 9th Street, in the Fashion District, the Torrance Daily Breeze and Bisnow reported, citing a regulatory filing and state employment report.

The closure comes as the company is in talks with liquidators and mulls a second bankruptcy that could shut the doors to its 350 remaining stores.

Sparc Group, which owns Forever 21, leased 164,000 square feet of offices at the California Market Center in 2022 to serve as headquarters for Forever 21, as well as West Coast workers for its Lucky Brand.

It’s not clear what portion of the lease is occupied by Forever 21. The landlord, New York-based Brookfield Properties, didn’t respond to a request for comment from Bisnow.

Forever 21 Chief Financial Officer Bradley Sell is among the 350 or so employees to be shown the door, according to the Daily Breeze. Forever 21 CEO Winnie Park left in December.

When its headquarters closes, an unspecified number of remaining employees will work remotely, according to the Daily Breeze.

Forever 21 has 58 stores in California, including several in the L.A. region.

In a letter this month, Sell informed the California Employment Development Department that the details of the closure and layoffs were subject to change.

Forever 21 has strained to keep up with online fast-fashion retailers such as Shein and Temu.

In 2019, Forever 21 sold its Lincoln Heights headquarters, while filing for bankruptcy. A year later the firm was acquired by Simon Property Group, Brookfield and Authentic Brands Group.

The retailer was run by Simon and Authentic Brands under the banner of Sparc Group, according to Bisnow. In January, Sparc Group merged with JCPenney to form Catalyst Brands. Forever 21 wasn’t included in the merger.

A year ago, Blackstone and Worthe Real Estate Group listed the former Forever 21 headquarters at 3880 North Mission Road. The 1.5 million-square-foot office and industrial campus expected bids up to $200 million.

— Dana Bartholomew