Forever 21 will close its headquarters in Downtown Los Angeles' Fashion District and lay off 358 employees.

An unknown number of remaining employees will work remotely once the office in the California Market Center closes, the Daily Breeze reported. The closure comes as the company is reportedly in talks with liquidators and mulling a second bankruptcy that could shutter its remaining 350 stores.

The parent company for Forever 21, Sparc Group, leased 164K SF of office in the California Market Center in 2022. That space was supposed to house Forever 21 employees as well as West Coast employees for apparel company Lucky Brand.

The landlord, Brookfield Properties, did not immediately respond to a request for comment from Bisnow.

Forever21 Chief Financial Officer Bradley Sell informed the California Employment Development Department in a Feb. 18 letter. Sell wrote that the details in the letter were subject to change as the company's situation develops.

Sell is among the employees that will be laid off, according to the Daily Breeze.

“Forever 21’s operating company, which is the brand licensee in the U.S., continues to explore strategic options while also looking at ways to reduce costs across our operations and optimize our store footprint," a spokesperson  for Forever 21 said in a statement.

"As part of this review, we have started the process of issuing WARN notices to employees who may be affected, in compliance with applicable legal requirements," the spokesperson said. "This decision was not made lightly, and we remain committed to transparency and fair treatment of our employees during this period of transition.”

Forever 21 has struggled as online fast-fashion retailers like Shein and Temu have posed new, stiff competition for the brand.

Forever 21 sold its Lincoln Heights headquarters in 2019. It filed for bankruptcy that same year and was acquired in 2020 by Simon Property Group, Brookfield Corp. and Authentic Brands Group.

The retailer was run by Simon and Authentic Brands under the banner of Sparc Group. In January, Sparc Group merged with JCPenney to form Catalyst Brands. Forever 21 was not included in the merger.

UPDATE, FEB. 25, 4:50 P.M. PT: This story has been updated with a statement from a Forever 21 spokesperson.