Customise Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorised as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyse the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customised advertisements based on the pages you visited previously and to analyse the effectiveness of the ad campaigns.

No cookies to display.

Business

Forever 21 bankruptcy – Forever 21 files for bankruptcy for second time in six years

Advertisements

Fast-fashion retailer Forever 21 has filed for Chapter 11 bankruptcy protection for the second time in six years as it faces diminishing mall traffic and increased competition from online platforms. The company stated it will conduct liquidation sales across its US stores while undergoing a court-supervised sale and marketing process for its assets. 

Despite the filing, Forever 21 has confirmed that its US stores, as well as its website, will remain operational, with international operations remaining unaffected. The retailer’s assets are estimated to be between $100 million and $500 million, while liabilities range from $1 billion to $5 billion, with over 10,001 creditors involved.

Earlier reports stated that Forever 21 was contemplating the closure of at least 200 additional locations as part of the bankruptcy proceedings, anticipated to commence in March. 

According to a report in Bloomberg in February that cited people in the know, if a qualified buyer was not found for its remaining stores, the company was considering liquidating its entire chain of approximately 350 stores. 

The decision to potentially close these stores was influenced by years of financial losses they have incurred, leading to withheld royalties and rent payments to maintain operations. The company also planned liquidation sales at its stores while simultaneously “conducting a court‑supervised sale and marketing process for some or all of its assets.”

In the event of a successful sale, Forever 21 said it may pivot away from a full wind down of operations to facilitate a going-concern transaction.
 

https://akm-img-a-in.tosshub.com/businesstoday/images/story/202503/67d7a86054c1b-forever-21-files-for-bankruptcy-over-years-of-financial-loss-174306712-16×9.jpg

2025-03-17 04:43:26

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button