Forever 21 Inc.’s clothing suppliers say they are left with $120 million in unpaid bills following the company’s bankruptcy sale to mall owners and brand-licensing firm Authentic Brands Group LLC, WSJ Pro Bankruptcy reported. Bankruptcy Judge Kevin Gross said on Tuesday that he would approve the $81 million purchase of Forever 21’s assets by a consortium of the retailer’s largest landlords, Simon Property Group Inc. and Brookfield Property Partners LP, and Authentic Brands. His decision overruled objections brought by Forever 21 suppliers based in China, Hong Kong and South Korea that are faced with minimal or no recoveries on goods they sold to the fast-fashion chain during the bankruptcy on the expectation they would be paid in full before the case closed. The sale price for the retailer doesn’t cover those vendor bills. Instead, the $81 million in cash proceeds will mostly go to lenders, Forever 21 advisers said in Tuesday’s court hearing. Tyler Cowan, a Lazard Freres & Co. managing director advising Forever 21, said the money will pay down a $75 million balance on the company’s bankruptcy loan, as well as a further $3 million in fees and expenses.
