By Luke Tugby2019-09-30T06:43:00
Forever 21 has filed for Chapter 11 bankruptcy protection in the US amid plans to close up to 350 stores across the globe.
The fast fashion operator, which only has a clutch of UK stores including a flagship on London’s Oxford Street, said it would “exit most international locations in Asia and Europe”.
However, it will continue to operate in Mexico and Latin America.
Almost 180 of the closures could come in its native US as it bids to radically restructure to stay afloat.
Chapter 11 protection acts in a similar way to a company voluntary arrangement (CVA) in the UK, postponing a US company’s financial obligations to creditors to give it time to refinance or sell parts of the business.
Please sign in now if you have a subscription
Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.
Register today for a taste of our high-quality intelligence and enjoy:
Discover Retail Week register now
Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.