Forever 21, Pier 1: Bad News For 2 Retailers In Escondido

ESCONDIDO, CA — It looks like not everything lasts forever. The retail chain Forever 21 is expected to close up to 178 stores in the United States, and the home decor store Pier 1 could close up to 145 of its own locations.

Forever 21 announced it has filed for Chapter 11 bankruptcy in a letter to customers on Sept. 29.

The teenage clothing store made it clear, though, it wasn’t going out of business, and instead filed for bankruptcy protection as a “deliberate and decisive step to put us on a successful track for the future,” according to the letter.

Pier 1 announced their own possible store closings after reporting low financial results on Sept. 25.

“As anticipated, our fourth-quarter sales and profitability were disappointing and reflect the execution issues we identified earlier in the year and have been working with urgency to correct,” Cheryl Bachelder, interim Pier 1 CEO, said in a statement.

The two companies join a growing list of brick-and-mortar establishment that have seen a nosedive in revenue and popularity with the emergence of e-commerce companies such as Amazon and Walmart.

“We are confident this is the right path for the long-term health of our business,” Forever 21 said in the letter to customers. “Once we complete a reorganization, Forever 21 will be a stronger, more viable company that is better positioned to prosper for years to come.”

Neither chain has yet specified the locations that will be closed, but for now everything seems to be off the table.

These are the Forever 21 locations in San Diego County:

• 2525 El Camino Real, Space #102, Carlsbad (Shops at Carlsbad)
• 415 Parkway Plaza, Suite 357, El Cajon (Parkway Plaza)
• 200 E. Via Rancho Parkway, Suite 3000, Escondido (Westfield North County)
• 4545 La Jolla Village Drive, Suite H10, La Jolla (University Town Center)
• 3030 Plaza Bonita Road, Suite 2100, National City (Plaza Bonita)
• 1640 Camino Del Rio, San Diego (Mission Valley)
• 3535 Sports Arena, San Diego (Sports Arena)
• 4201 Camino De La Plaza, Suite 138, San Diego (The Shops at Las Americas)
• 7007 Friars Road, Suite 1025, San Diego (Fashion Valley)

These are the Pier 1 locations in San Diego County:

• 878 Eastlake Parkway, Chula Vista (Eastlake)
• 1830 Main Court, Chula Vista (Chula Vista)
• 2671 Via De La Valle, Del Mar (Del Mar)
• 1022 North El Camino Real, Encinitas (Encinitas)
• 1272 Auto Parkway, Escondido (Escondido)
• 9820 Mission Gorge Road, Santee (Santee)
• 8657 Villa La Jolla Drive, La Jolla (La Jolla)
• 5500 Grossmont Center Drive, La Mesa (La Mesa)
• 5171 Mission Center Road, San Diego (Mission Valley)
• 2555 Vista Way, Oceanside (Oceanside)
• 12004 Carmel Mountain Road, San Diego (Carmel Mountain)

Forever 21 saw its revenue decrease to $3.3 billion last year, which is down from the $4.4 billion in 2016, according to the New York Times. The company has also laid off more than 10,000 people since 2016.

The home goods store Pier 1 has been dealing with its own recent troubles. It had to close 30 stores at the end of its fiscal year in March of 2019, and the number of closures could now increase up to 15 percent of their outlets.