Forever 21 is set to downsize its Australian mega flagship store, according to News Ltd reports.
Woolworths has lodged a development application to convert the basement of its Pitt Street site into a metro supermarket.
If successful, the application would see Forever 21 downsize from its 1700 square metre, three-floor mega complex.
This would be the second downgrade for Forever 21 in Sydney, having already shuttered its suburban site.
The Australian licensee is United Arab Emirates based-group Sharaf.
Earlier this year, GAP license holder Oroton Group announced it would relinquish the brand and exit by January.
This was followed by the collapse of Topshop Australia, which entered into administration in May.