Another biggie nearing possible bankruptcy!
This time it’s the renowned apparel retailer Forever 21. The fashion brand is considering to file for bankruptcy as efforts to restructure its debt went in vain, sources with knowledge of the plans said.
The fast fashion retailer was already negotiating additional financing options and working with advisors to restructure the company’s debt, but those efforts have stalled, making bankruptcy more likely.
As of now, Forever 21 has not announced any plans to close any of its over 800 locations across the US.
Filing for Chapter 11 would help the company shed unprofitable stores and recapitalise the business. This could be problematic for few of the major mall owners in the country since Forever 21 is one of the biggest mall tenants still standing after a wave of bankruptcies in the retail industry.
Forever 21′s real estate footprint is particularly large, with more than 815 stores globally.
Meanwhile, Co-founder Do Won Chang is focused on maintaining a controlling stake in Forever 21, which has limited its fundraising options.
