Forever 21 said in a statement Sunday night it had filed for Chapter 11 bankruptcy protection and would close several stores in the U.S. and most in Asia and Europe. But it would continue operations in Mexico and Latin America.
Our thought bubble, from Axios chief financial correspondent Felix Salmon: Forever 21 remains a force to be reckoned with in the U.S. and across the Americas. It expanded too fast, especially internationally, and it will now operate fewer stores in fewer countries. But the fact that it just raised $350 million in new money proves that it’s far from dead.
The big picture: Jon Goulding, an executive at the consultancy Alvarez & Marsal who will be Forever 21’s chief restructuring officer during the proceedings, told the New York Times he believes the retailer can renegotiate many of the U.S. stores' leases following the filing.
- The retailer expects to close up to 178 stores in the U.S. and up to 350 overall, T, according to the Times.
What they're saying: This was an important and necessary step to secure the future of our Company, which will enable us to reorganize our business and reposition Forever 21," Forever 21 executive vice president Linda Chang said in a statement.
