Forever 21 prepares for potential bankruptcy filing - Bloomberg

FILE PHOTO: Customers walk and stand outside the first Forever 21 retail store in Lima, at Real Plaza Salaverry shopping mall October 1, 2014. Forever 21 opened its first store in Lima on September 27. REUTERS/Mariana Bazo - Copyright Mariana Bazo(Reuters)

By Reuters

Published on 29/08/2019 - 01:04•Updated 11/05/2024 - 02:59

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(Reuters) - Fashion retailer Forever 21 Inc is preparing for a potential bankruptcy filing, Bloomberg reported on Wednesday, citing people with knowledge of the plans.

The company has been in talks for additional financing and is working with a team of advisers to help restructure its debt, but negotiations with possible lenders have so far stalled, Bloomberg reported.

Forever 21 is looking to secure a potential debtor-in-possession loan to take the company into Chapter 11, even as some window remains to strike a last-minute deal, the report added.

The company did not immediately respond to a Reuters request for comment.

(Reporting by Rama Venkat in Bengaluru; Editing by Maju Samuel)

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