Forever 21 Inc. is in discussions to give a stake in the company to its two largest landlords as part of a restructuring that would allow co-founder Do Won Chang to retain a share, Bloomberg News reported. The ailing fast-fashion retailer is in talks with Simon Property Group Inc. and Brookfield Property Partners LP about the proposal, which would be part of a bankruptcy filing. The negotiations are ongoing, and could end without a deal, sources said. Los Angeles-based Forever 21 is preparing to file for bankruptcy as soon as this month, ideally with a restructuring plan in place, the people said. Company advisers have been working on obtaining a bankruptcy loan package that would give the retailer about $75 million to continue operations during the case. 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.
