Forman Mills Department Store Closures Amid Layoffs and Potential Bankruptcy: Live Updates
Aaron Royce
Assistant Digital Editor
Off-price retailer Forman Mills is the latest chain store to face financial challenges with large layoffs this week.
The regional chain, which specializes in selling off-priced men’s, women’s and children’s clothing, as well as shoes, toys, home goods and school uniforms, is currently set to lay off 245 employees by Aug. 4, according to Retail Dive. The news comes from the brand’s Worker Adjustment and Retraining Notification (WARN) filing, which will impact workers in seven stores.
Currently, the filing states Forman Mills is aiming to sell its company, though it could potentially file for Chapter 11 bankruptcy if a sale isn’t possible. The decision could also impact its store numbers and closures; a location in Philadelphia already closed, and the aforementioned layoffs will affect employees at seven different locations.
Previously, Forman Mills was acquired in 2016 by private equity firm Goode Partners, with additional investments and credits from Cohesive Capital Partners and Monroe Partners, respectively. At the time, the brand operated 36 store in nine states, whereas it only operates 17 stores in four states (New York, New Jersey, Pennsylvania and Delaware) today.
However, Forman Mills isn’t the only retailer to face challenges in recent years. As previously reported in FN, Bed, Bath and Beyond and Harmon Face Value announced the closures of over 200 retail locations in Jan. 2022. In April 2023, the home goods chain officially announced that it would file for Chapter 11 bankruptcy and be holding store-wide liquidation sales.
2023 also marked difficult times for other brands. In Jan. 2023, Party City filed for Chapter 11 bankruptcy, and Jo-Ann Fabrics — though it isn’t ending its business — began closing eight retail locations. Big Lots also announced that it would begin closing its retail locations, with plans to shutter at least seven stores by the year’s end.
