Forever 21, Pier 1: Bad News For 2 Major Retailers On Long Island

Not everything lasts forever, especially in retailing. The Forever 21 clothing chain 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 in a letter to customers Sept. 29 that it has filed for Chapter 11 bankruptcy.
The teenage clothing store made it clear, however, it isn't going out of business, but 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 its own possible store closings after reporting poor 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 their revenue and relevance 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 on the table.

Forever 21 has Long Island stores Bay Shore, Lake Grove, Deer Park, Huntington Station, Massapequa, Riverhead and Hicksville.

Pier 1 has stores in Bohemia, Lake Grove, Bay Shore, Commack, Rocky Point, Huntington Station, Massapequa Park, Riverhead and Freeport.

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.