Forever 21 to close in Geneva; Pier 1 in Batavia might be on chopping block

Two retailers in Geneva and Batavia are in financial trouble, with one planning to close and the other possibly closing, according to news releases and investor reports.

Women’s clothing retailer Forever 21, at 122 Commons Drive, Geneva, announced in a news release on its corporate website that this is one of the stores it will be closing in Illinois.

Home goods retailer Pier 1 included the store at 481 N. Randall Road, Batavia, among those possible to be closed after reporting a decrease in sales for its second quarter on Sept. 25, according to its investor report.

Batavia Chris Economic Development Consultant Christopher Aiston said it is not shocking news that Pier 1 might close its Randall Road store.

“They’re closing them all over,” Aiston said. “They have really under-performed. Their stocks have tumbled, their sales performance has been terrible nationwide.”

Aiston said e-commerce and competition from stores offering similar household items, only at lesser cost, has likely had an effect on the retailer.

“It has to be difficult for them,” Aiston said. “They’re closing stores in the hope that the business can turn around. It’s a big struggle for them. It’s gone from bad to worse for them.”

But for Batavia, if Pier 1 closes, that area is a prime location, Aiston said.

“It’s an out lot … right there on Randall Road with good visibility,” Aiston said.

Email messages seeking comment and more details from the retailers were not returned.

Geneva Commons property manager Cathy Charhut was not in on Tuesday and unavailable to comment.

The Mid America Asset Management leasing agent for the Wind Point Shopping Center where Batavia’s Pier 1 is located did not return a voicemail message seeking comment.

Forever 21 posted news of seeking Chapter 11 bankruptcy protection to its customers on its website www.forever21.com on Sept. 29.

“Essentially this allows Forever 21 to continue to operate its stores as usual, while the company takes positive steps to reorganize the business so we can return to profitability and refocus on delivering incredible styles and fashion you love for many years to come,” the message stated.

The bankruptcy filing does not mean the clothing retailer is going out of business, the message stated.

“As part of our filing, we have requested approval to close a number of stores across the U.S.,” according to the message. “The decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords.”

In its second quarter investor report Sept. 25, Pier 1’s net sales decreased by 14.3% to $304.6 million from $347.5 million.

In fiscal 2019 year-end report in April, Pier 1 had a 19.5% reduction in net sales for its fourth quarter of fiscal 2019, down to $412.5 million, compared to last year’s $512.2 million.

Its fiscal years ended March 2, 2019 and March 3, 2018, respectively.

Interim Pier 1 CEO Cheryl Bachelder stated in the April investor report that the company has a “fiscal 2020 action plan today, which is designed to reset our operating model and rebuild our business for the future.”

“After closing 30 stores in fiscal 2019, the company is considering closing up to 45 locations in fiscal 2020 as leases expire,” according to the investor report.

In a published transcript of an earnings conference call Sept. 28, Bachelder stated, cost-cutting is part of the company’s plan and officials are in talks with landlords to reduce rent.

“We are encouraging those landlords who have not yet participated in discussions to work with us to achieve our goals,” Bachelder stated in the transcript. “Thus far, we've decided to close approximately 70 stores in fiscal 2020 and expect that number to increase as we continue the dialogue with landlords.”