Forever 21 files for bankruptcy
The trend continues for retailers to experience slowed sales and lower earnings that are resulting in store closures and bankruptcies. Forever 21 is another in a growing list of retail tenants that are closing locations throughout the country. As reported in Chain Store Age:
Forever 21, the retailer that popularized fast-fashion in the U.S., filed for Chapter 11 bankruptcy protection with a plan to close most of its global locations.
The filing by the privately held, family-run chain, which operates 815 stores worldwide, was not unexpected as it comes after weeks of speculation. The formerly high-flying Forever 21 has struggled in recent years, challenged by over-expansion, increased competition from discounters such as Target and the rise of online subscription services and rental retail. Online resale (secondhand) sites have also grown in popularity.
Forever 21 said it has obtained $275 million in financing from its existing lenders with JPMorgan Chase and $75 million in new capital from TPG Sixth Street Partners, as well as affiliated funds, to help it support its operations in bankruptcy. As part of its restructuring strategy, the company plans to exit most of its international locations in Asia and Europe as well as in Canada. It has requested approval to shutter up to 178 U.S. stores and up to 350 in total, the New York Times reported. (The retailer will continue operations in Mexico and Latin America.)
Read the entire article at Chain Store Age and to discuss financing a commercial property contact Liberty .