Forever 21 has vowed to continue operating “the vast majority” of its US stores despite suggestions it is about to file for bankruptcy.
The fashion chain, which operates 700 stores in its homeland, is reported to be running out of cash as it battles to secure fresh funding from its lenders.
As previously reported, talks over a potential financing deal have stalled. Forever 21 is instead seeking a debtor-in-possession loan to take the company into Chapter 11 bankruptcy, according to Bloomberg.
The retailer is also in talks with landlords in a bid to renegotiate leases on more favourable rent terms, amid reports that it could file for bankruptcy as early as Sunday.
Please sign in now if you have a subscription or are already registered with us.
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.