Forever 21 Prepares for Possible Bankruptcy Filing
As the struggling fashion retailer’s hopes for recovery fade, Forever 21 is said to be preparing for a potential bankruptcy filing. According to Bloomberg.online, Forever 21 has been trying to secure additional financing in an effort to restructure its debt.
Although Forever 21 has yet to onlinement, it has reportedly been exploring bankruptcy as an option. Only a last-minute deal with potential lenders could keep the onlinepany out of court at this point.
Filing bankruptcy would allow Forever 21 to eliminate unprofitable stores and recapitalize the business, but the vacancies left behind by the closing stores would cause a significant issue for shopping malls.
Forever 21 is one of the more sizeable tenants still hanging on in many struggling malls. If those stores close, shopping centers would likely have a hard time filling those vacancies.
Stay informed with the latest news of store closures, product launches, recalls and more!