Quick Take
In the latest blow to retail in downtown Santa Cruz, Forever 21 will close its doors at the end of January after over 12 years in operation. The fast fashion retailer’s departure could potentially leave both corners of Pacific and Soquel avenues largely empty, given the recent closure of New Leaf Community Markets’ store on the opposite corner.
Forever 21 will close the doors to its Pacific Avenue store at the end of January after over 12 years in operation. The fast fashion retailer took over the former Borders bookstore at the corner of Pacific and Soquel avenues in 2012. The store’s last day in operation is currently set for Jan. 31, 2025.
A corporate spokesperson for Forever 21 did not respond to repeated calls and emails for details about why the store is closing, but the retailer has been closing stores around the country following its bankruptcy filings in 2019.
A CNBC article about the bankruptcy noted that the chain, which started in 1984, has struggled to compete with other inexpensive clothing retailers amid a rapid expansion. Competing retailers like Charlotte Russe have also filed for bankruptcy in recent years as more customers turn to online retailers like Shein and Temu for their fast fashion finds.
Following the bankruptcy filing, Forever 21 closed around 200 stores, including stores in Salinas and Monterey, in an effort to reduce its footprint and balance its budget. However, the closures didn’t do enough to stabilize its finances; earlier this year, it was reported that the company was struggling to negotiate lower rents with its landlords around the U.S.
The store’s departure from downtown leaves Gap and Urban Outfitters as some of the only remaining national chains with a presence on Pacific Avenue, with Peet’s Coffee & Tea and Starbucks having closed their Pacific Avenue locations in recent years.
Lookout’s calls and emails to the building’s property manager and real estate agent were not returned. Redtree Properties, the building’s owner, is working with real estate firm Sherman & Boone to find a new tenant as of Feb. 1, 2025. Rent for the 17,308-square-foot space is currently listed at $18.60 per square foot per year.
The store’s departure could potentially leave both corners of Pacific and Soquel largely empty, given the recent closure of New Leaf Community Markets’ store on the opposite corner.
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