Forever 21 Closes Store in Costa Rica Amid U.S. Bankruptcy Filing
The fashion retailer shutters its Alajuela location while maintaining operations in other areas of Costa Rica.
Forever 21 has closed one of its stores in Costa Rica, specifically the location at City Mall in Alajuela, which ceased operations approximately three weeks ago.
The store, operated by franchisee AR HOLDINGS, has removed all branding associated with the retailer, as noted during a recent site visit.
Despite this closure, Forever 21 continues to operate three other locations in Costa Rica: in Plaza Lincoln (Moravia), Multiplaza del Este (Curridabat), and Avenida Escazú (San Rafael de Escazú).
According to an Instagram post from the brand's Latin America account in September, these stores remain open to the public.
Forever 21 opened its first store in Costa Rica in 2013, generating significant consumer excitement.
For instance, the opening of the Plaza Lincoln location attracted over 1,000 shoppers, with at least 650 individuals queuing overnight.
The most recent store opened in November 2023 at Avenida Escazú, with AR HOLDINGS announcing an investment of $1.1 million for a 1,000-square-meter space.
In a related development, Forever 21 recently filed for Chapter 11 bankruptcy protection in the United States for the second time in six years, amid declining foot traffic in shopping malls and increasing competition from online retailers.
F21 OpCo, LLC, which operates Forever 21 in the U.S., has entered into a Support Agreement with its secured creditors and has initiated a voluntary bankruptcy process in the Delaware Bankruptcy Court.
As part of this process, the company is seeking an orderly liquidation of its U.S. operations while exploring options to sell some or all of its assets.
Approximately 350 stores in the United States are impacted by this liquidation process, although stores operating outside the U.S. under franchise agreements, including those in Costa Rica, are excluded from the bankruptcy proceedings and will continue to run as normal.
The store, operated by franchisee AR HOLDINGS, has removed all branding associated with the retailer, as noted during a recent site visit.
Despite this closure, Forever 21 continues to operate three other locations in Costa Rica: in Plaza Lincoln (Moravia), Multiplaza del Este (Curridabat), and Avenida Escazú (San Rafael de Escazú).
According to an Instagram post from the brand's Latin America account in September, these stores remain open to the public.
Forever 21 opened its first store in Costa Rica in 2013, generating significant consumer excitement.
For instance, the opening of the Plaza Lincoln location attracted over 1,000 shoppers, with at least 650 individuals queuing overnight.
The most recent store opened in November 2023 at Avenida Escazú, with AR HOLDINGS announcing an investment of $1.1 million for a 1,000-square-meter space.
In a related development, Forever 21 recently filed for Chapter 11 bankruptcy protection in the United States for the second time in six years, amid declining foot traffic in shopping malls and increasing competition from online retailers.
F21 OpCo, LLC, which operates Forever 21 in the U.S., has entered into a Support Agreement with its secured creditors and has initiated a voluntary bankruptcy process in the Delaware Bankruptcy Court.
As part of this process, the company is seeking an orderly liquidation of its U.S. operations while exploring options to sell some or all of its assets.
Approximately 350 stores in the United States are impacted by this liquidation process, although stores operating outside the U.S. under franchise agreements, including those in Costa Rica, are excluded from the bankruptcy proceedings and will continue to run as normal.
