Better get your trendy outfits and accessories while you can, as things aren’t looking good for Forever 21. Bloomberg is reporting that the fashion chain is preparing to file for bankruptcy as their “turnaround options” have faded.
According to Bloomberg, “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. Focus has thus shifted toward securing a potential debtor-in-possession loan to take the company into chapter 11, even as some windows remain to strike a last-minute deal that keeps it out of court.”
This bankruptcy filing could allow Forever 21 to close stores that aren’t making money, but that could cause problems for malls and landlords that rely on the store for business.
There are over 800 Forever 21s currently operating around the globe.
Forever 21 has yet to comment on these reports.