Forever 21 Inc. is preparing for a potential bankruptcy filing as the fashion retailer’s cash dwindles and turnaround options fade, Bloomberg News reported. 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, sources said, even as some window remains to strike a last-minute deal that keeps it out of court. Forever 21 is one of the biggest mall tenants still standing after a wave of bankruptcies in the retail sector. Indianapolis-based Simon counts Forever 21 as its sixth-largest tenant excluding department stores, with 99 outlets covering 1.5 million square feet, according to a filing as of March 31. Read more.
Occupancy issues are at the heart of many significant retail cases, as detailed in the ABI publication Retail and Office Bankruptcy: Landlord/Tenant Rights, available at the ABI Store.
