Forever 21 files for bankruptcy

Forever 21 will close up to 350 stores globally after filing for Chapter 11 bankruptcy in the US.

The fashion retailer, which has only a few stores in the UK, noted that it will continue to operate in Mexico and Latin America.

Chapter 11 protection is similar to Company Voluntary Agreement (CVA) in the UK, delaying a US company’s financial obligations to creditors, giving time to refinance or sell parts of the business.

Forever 21 will close half of its stores, going from around 800 to fewer than 500.

The retailer said it had obtained $275 million from existing lenders, along with $75 million in new capital.

Executive vice president Linda Chang said this was a necessary step to secure the future of the company, enabling reorganisation and repositioning.

    Share Story:

Recent Stories


HULFT
Find out how HULFT can help you manage data, integration, supply chain automation and digital transformation across your retail enterprise.
Talking shop: retail technology solutions from Brother
Retail Systems editor Peter Walker sits down with Brother’s senior commercial client manager Jessica Stansfield to talk through the company’s solutions for retailers and hospitality businesses, what’s new in labelling technology, and the benefits of outsourcing printing.