Forever 21 plans to keep the Gazooks name, "build upon the business that's already there" and will likely close some of the chain's 243 stores, which are located in 40 states, Lawrence Meyer, Forever 21's CFO, told GSR. "We're going to evolve the merchandise mix and assortment over time," he said. "The merchandise will evolve." After a year, Meyer said, Forever 21 officials will decide whether or not to expand the Gadzooks chain.

Over the last year, Gadzooks, based here, has closed about 130 stores. In the summer of 2003, it operated about 425 units. The chain filed for bankruptcy a year ago this month after facing competition from similar retailers.

Before the summer of 2003, Gadzooks was selling apparel to both men and women but switched to only targeting the later in that season. Later that year, after facing months of declining same-store sales, the company warned of its pending bankruptcy.