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This is completely shocking. Forever 21 Inc. is getting ready to potentially file for bankruptcy.
As reported by Bloomberg, the fashion retail company has been looking for additional financing and has been working with a team of advisers to help them restructure their debt. As of right now, those negotiations are at a standstill.
Forever 21 was founded in 1984, and it has more than 800 locations in U.S., Asia, Europe and Latin America. If the company were to proceed with the filing, the focus would be on obtaining a potential debtor-in-possession loan which will take the company into Chapter 11. This filing will also help the company close the stores that are not making any profit and recapitalize the business.
Currently, Forever 21 is one of the biggest mall tenants that are still standing after other companies have filed for bankruptcy.