Forever 21 has filed for Chapter 11 bankruptcy protection. The company may close up to 178 stores in the U.S

Forever 21 — the ubiquitous mall-based fashion retailer aimed at teens, tweens and young adults — filed for Chapter 11 bankruptcy protection, joining a growing list of apparel outlets to fall victim to competitive online market pressures.

The California-based company may close up to 178 U.S. stores, according to court records.
In a statement to customers Sunday night, Forever 21 said the bankruptcy move was necessary so it could take "positive steps to reorganize the business so we can return to profitability."
"This was an important and necessary step to secure the future of our Company, which will enable us to reorganize our business and reposition Forever 21," Linda Chang, the company's executive vice president, said in a statement. The company stressed it's not going out of business, adding that people who come into its stores will have a shopping experience that "will continue to feel like a normal day." In the records filed in U.S. Bankruptcy Court for the District of Delaware, the company detailed possible store closures but emphasized that it does not expect to fully exit any major U.S. market. The company's leaders also plan to keep operations in Mexico and Latin America, while shutting down stores in Asia and Europe.
Forever 21 will continue to operate in the Philippines, SM Retail says: