Forever 21 is pulling out of Ireland after racking up more than €40m in losses
The American chain’s Jervis Street store was opened in 2010 with plans for 250 jobs.
AMERICAN CLOTHING CHAIN Forever 21 is to close its Dublin store and pull out of Ireland.
The opening of the company’s Jervis Street shopping centre store was announced in 2010 with much fanfare as the US company pledged 250 jobs.
Recent filings for Forever 21 Fashion Ireland Limited, however, said that “as part of an overall strategic review” of the group’s operations in Ireland, a decision has been taken by the board to cease commercial operations and close its only store here.
The accounts for the year ending 29 February 2016 show the company recorded an annual loss of €15.6 million and had accumulated losses of €44 million since the Irish operation was established.
“The company has incurred costs associated with the decision to cease operations in this period, which has substantially driven the loss for the year,” the directors’ report said.
The ‘principal risks and uncertainties’ to the company are listed as including:
- Competitive change in the marketplace
- Unusually high changes in costs involved in operating the business
The report added:
“Following the decision to cease operations, there has been a reduction in the significance of these risks to the Irish business.”
Over €13 million has been set aside for closure costs. The accounts show that an average of 82 people were employed at the company in Ireland during 2016.
Forever 21′s company website lists the firm as the fifth-largest speciality retailer in the US.
According to Forbes, it operates over 600 stores under the Forever 21, XXI Forever, For Love 21, Heritage 1981 and Reference banners.
It also has stores in Canada, Europe, Japan, Korea and the Philippines and is headquartered in Los Angeles.
Written by Daragh Brophy and posted on TheJournal.ie
