US-owned fashion retailer Forever 21 has filed for bankruptcy protection in move that could see almost half of its stores disappear from the high street.
The chain, founded in 1984, said it plans to "exit most international locations in Asia and Europe" after retailing the extent of its financial troubles on Sunday.
Under the changes, the Loas-Angeled-based company, which has 815 stores in 57 countries, said it will continue to operate in Mexico and Latin America.
However its three remaining stores in London - in the Bullring Birmingham, Oxford Street, London and Church Street, Liverpool, will most likely close.
It comes just days after bosses last week said it would exit Japan and close all 14 stores at the end of October due to "continued sluggish sales".
Overall, it expects to close up to 350 stores worldwide, a spokesman said, including as many as 178 US stores.
The move comes as traditional retailers continue to struggle against rising competition from online rivals.
A Chapter 11 bankruptcy protection postpones a US company's obligations to its creditors, giving it time to reorganise its debts or sell parts of the business.
Bosses said under the changes, it expects to have between 450 and 500 stores left globally, down from around 800 currently in operation.
"Decisions as to which international locations will be closing are ongoing. We do not expect to exit any major markets in the US," a spokesman said.
"This does not mean that we are going out of business - on the contrary, filing for bankruptcy protection is a deliberate and decisive step to put us on a successful track for the future."
The retailer sought to reassure its customers in a public letter on Sunday, saying "stores are open" as normal.
A statement explained gift cards would continue to operate as standard - as would returns, exchanges and trading times.
"Most importantly, our stores are open and it will continue to feel like a normal day – you will not see any changes in our stores, gift cards will continue to be accepted, and our policies, including returns and exchanges, remain the same," the company wrote.
As part of the Chapter 11 proceedings, the firm said it has obtained £224million in financing from existing lenders and £60million in new capital.
The firm's executive vice president Linda Chang described the moves as an "important and necessary step to secure the future of our company, which will enable us to reorganize our business and reposition Forever 21".
