We inform you that on this website we use our own and third-party cookies to collect information about its use, improve our services and, where appropriate, display advertising by analyzing your browsing habits. You can expressly accept its use by pressing the "ACCEPT" button or configure and select the cookies you want to accept or reject in the settings. You can also get more information about our cookie policy here.

The global fashion business journal

Jun 15, 20243:05am

Forever 21 prepares for potential bankruptcy filing

The American fashion retailer has been working during the last couple of weeks to obtain additional financing and negotiate with its creditors to restructure its debt.

Aug 29, 2019 — 4:12pm

Forever21, potential bankruptcy to restructure debt



Forever21 could face bankruptcy. The American fashion retailer may be at the doors of Chapter 11 to restructure its debt.


The company has been working during the last couple of weeks to obtain additional financing and to restructure its debt. In this sense, Forever21 doesn’t rule out the possibility of filling for Chapter 11, if the agreement to avoid courts doesn’t work, according to Bloomberg.


Filing for bankruptcy will allow the company to close unprofitable stores and recapitalize the business. However, this measure could affect some of its shareholders, like Simon Property Group or Brookfield Property Partners, owners of most of its commercial stores.


The company based in Los Angeles, is in conversations with its creditor from the start of this year to restructure its debt. In April, the company closed its ecommerce platform in China and ended the alliances with Tmall and JD.com


Participation rules



Validation policy for comments: 

MDS does not perform prior verification for the publication of comments. However, to prevent anonymous comments from affecting the rights of third parties without the ability to reply, all comments require a valid email address, which won’t be visible or shared.
Enter your name and email address to be able to comment on this news: once you click on the link you will find within your verification email, your comment will be published.

0 comments — Be the first to comment