# Forever 21 Prepares For Potential Bankruptcy



## SoopremeBeing (Aug 29, 2019)

Strange....they just opened a bunch of new stores and they had the recent Baby Phat re-launch...




Forever 21 Inc. is preparing for a potential bankruptcy filing as the fashion retailer’s cash dwindles and turnaround options fade, according to people with knowledge of the plans.

The company has been in talks for additional financing and working with a team of advisers to help it restructure its debt, but negotiations with possible lenders have so far stalled, the people said. Focus has thus shifted toward securing a potential debtor-in-possession loan to take the company into Chapter 11, they said, even as some window remains to strike a last-minute deal that keeps it out of court.
Representatives for Forever 21 didn’t respond to a request for comment.

A bankruptcy filing would help the company shed unprofitable stores and recapitalize the business, said the people, who requested anonymity discussing private negotiations. Yet it could also be problematic for the country’s major mall owners, including Simon Property Group Inc. and Brookfield Property Partners LP. Forever 21 is one of the biggest mall tenants still standing after a wave of bankruptcies in the retail sector.

*Empty Spaces*
If the chain were to close a significant number of stores as part of the restructuring, its landlords could have trouble filling the vacancies. Indianapolis-based Simon counts Forever 21 as its sixth-largest tenant excluding department stores, with 99 outlets covering 1.5 million square feet, according to a filing as of March 31.

Co-founder Do Won Chang has been focused on maintaining a controlling stake in Forever 21, which has limited its fundraising options.

A faction of company officials, without the approval of Chang, had asked its biggest landlords to consider taking a stake in the retailer amid a disagreement within its leadership, Bloomberg previously reported.


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## Dposh167 (Aug 29, 2019)

This clearly is a case of bad financial management internally. Or expanding too quickly and not getting rid of poor performing stores a long time ago..etc. Their market still likes cheap clothes so it cant be people are abadoning them. I always though F21 was doing fairly well


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## ThirdEyeBeauty (Aug 29, 2019)

Maybe they realized it would cost too much to import the cheap clothes they received from China.


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## bellatiamarie (Aug 29, 2019)

Idk.... with the fashion novas and sheins and boohoos popping up overnight I’m not surprised.  Not to mention the thousands of Instagram boutiques with all this cheap tight yeast infection producing clothing that certain demographics  tend to be drawn to.  F21 is not really dominating the market as in days past.


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## msbettyboop (Aug 29, 2019)

Their clothes suck...


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## ava2 (Aug 29, 2019)

Welp.

Between Amazon and other fast fashion outlets can’t say I didn’t see this coming.


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## meka72 (Aug 29, 2019)

bellatiamarie said:


> Not to mention the thousands of Instagram boutiques with all this cheap tight yeast infection producing clothing that certain demographics  tend to be drawn to.


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## Laela (Aug 29, 2019)

If the stores are indicative of management: Cheap clothes..stores are always disorganized and clothes strewn all over the place.. then, it's no surprise.


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## Theresamonet (Aug 29, 2019)

The store here on Michigan Ave is closing. I wondered what was going on.


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## Southernbella. (Aug 29, 2019)

I've gotten some cute all-cotton dresses from there but I can't say I'll miss the store.


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## Lymegreen (Aug 29, 2019)

Business much like consumers are in their eyeballs in debt.  

This whole thing hinges on their ability to get another loan ei monthly payment.  

I wonder how many other businesses will follow this same road when money dries up.


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## RoundEyedGirl504 (Aug 30, 2019)

Sears and JCPenney have been on life support living off of debt for the past decade. Forever 21 may be able to pull it out. I noticed they have had a sales every week for the past 6 months at least. 70-80% off.


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## Covagirlm (Aug 30, 2019)

bellatiamarie said:


> cheap tight yeast infection producing clothing that certain demographics  tend to be drawn to




Oh my we look good! 


They have too many stores, everyone is shopping online now.


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## bellatiamarie (Aug 30, 2019)

Covagirlm said:


> Oh my we look good!
> 
> 
> They have too many stores, everyone is shopping online now.



 some of y’all look goodt but otherrrrrs .... but that ain’t my business.


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## MissNina (Sep 2, 2019)

Listen. Idc, if you know how to shop, F21 is that hit lol I also get like allllll my loungewear and tanks from there. $1.80 spaghetti tanks & $3.80 leggings ALL DAY. This news hurt my heart lol 

Fashion Nova = Rainbow.


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## MizAvalon (Sep 4, 2019)

RoundEyedGirl504 said:


> Sears and JCPenney have been on life support living off of debt for the past decade. Forever 21 may be able to pull it out. I noticed they have had a sales every week for the past 6 months at least. 70-80% off.



I can’t believe those dinosaurs still exist.


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## HappilyLiberal (Sep 4, 2019)

Dress Barn is closing too.  They sent my mom a 40 percent off coupon and told her the last day she can use her charge card is October 31st.


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## msbettyboop (Sep 10, 2019)

HappilyLiberal said:


> Dress Barn is closing too.  They sent my mom a 40 percent off coupon and told her the last day she can use her charge card is October 31st.



Noooooooooooo. I've gotten some incredible bargains there over the years


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## Sarabellam (Sep 12, 2019)

If they “close” they might pull a New York and Company and sell cheap clothes exclusively online.


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## Dposh167 (Sep 12, 2019)

Sarabellam said:


> If they “close” they might pull a New York and Company and sell cheap clothes exclusively online.


Ny and Company never closed. They still have physical stores. Do you mean The Limited?


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## Laela (Sep 13, 2019)

Not surprising...considering its parent company's stock is  a whopping $.0.30

Stock price: ASNA (NASDAQ) $0.30 -0.03 (-9.77%) as of Sep 13, 3:36 PM EDT 



HappilyLiberal said:


> Dress Barn is closing too.  They sent my mom a 40 percent off coupon and told her the last day she can use her charge card is October 31st.


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