Fashion retailer Forever 21 considers bankruptcy filing if asset-sale plans fail
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Forever 21 closed its last physical store in Singapore at 313@Somerset in June 2021.
PHOTO: ST FILE
NEW YORK – Forever 21 is considering multiple options to turn around its business, which could include a second bankruptcy filing, according to people with knowledge of the matter.
The company is focused on finding buyers for profitable leases, said the people, who asked not to be identified discussing a private matter. If that fails, it would turn to Chapter 11, though discussions are ongoing and no final decision has been made, they added.
Forever 21 is working with BRG for restructuring assistance, said some of the people. BRG did not immediately respond to a request for comment.
“As previously announced, Catalyst Brands is exploring a range of strategic options for the operations of Forever 21, and we are working diligently to achieve the best possible outcome,” a spokesperson for the company said in an e-mailed statement.
Authentic Brands Group bought the Forever 21 brand name out of bankruptcy in February 2020 and licensed it to Sparc Group.
Sparc Group – the operator of fashion brands that includes Forever 21 as well as Lucky Brand, Eddie Bauer, Aeropostale and Brooks Brothers – merged with JCPenney to form a new company called Catalyst Brands in January.
Forever 21 closed its last physical store in Singapore at 313@Somerset in June 2021. There had been three other outlets at Kallang Wave Mall, VivoCity and one above Orchard MRT station. BLOOMBERG
