Teen retailer Forever 21 Inc. plans to file for bankruptcy as soon as Sunday, according to people familiar with the matter, as slow sales, online rivals and changing consumer habits take a rising toll on many bricks-and-mortar chains, WSJ Pro Bankruptcy reported. But in a statement, Forever 21 said that it has no plans to file for bankruptcy on Sunday. “Our stores are open and it is our intention to continue to operate the vast majority of U.S. stores, as well as a smaller amount of international stores, providing customers with great service and the curated assortment of merchandise that they love and expect from Forever 21,” it said. Forever 21 expanded by opening large stores at a time when consumers, especially younger ones, were going online to shop. The closely held company has been facing a cash crunch and had been searching for a new loan for months. The chain is planning to shut down some of its more than 700 stores in bankruptcy, according to sources.
