Teen retailer Forever 21 Inc. has hired restructuring advisers to help negotiate exits from stores and raise a new loan as the once-hot chain deals with falling sales and a cash crunch, WSJ Pro Bankruptcy reported. The chain’s founder, Do Won Chang, is looking to avert a bankruptcy filing and salvage his equity in the Los Angeles-based retailer after it used up a loan from JPMorgan Chase to cover losses rather than buy merchandise. Founded in 1984, closely held Forever 21 operates more than 700 stores in dozens of countries, where it sells low-price apparel such as $5 tops and $20 dresses. The chain’s sales have slowed after a period of rapid growth and expansion that included the opening of giant stores in cities like New York and Las Vegas.
