Say it isn’t so! It seems it isn’t just the smaller, more independent stores that are struggling in todays retail market. Even brands with locations around the globe are feeling the heat and filing for bankruptcy.
Beloved fast fashion retailer Forever 21 is preparing for potential bankruptcy.
According to Bloomberg, the company has been dealing with high amounts of debt and is looking to restructure its debt, however the negotiations with possible lenders have stalled. This leaves us wondering what will happen to the retailers over 800 stores in 57 countries, including Canada.
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Not only are folks who work at Forever 21 at risk, but so are mall owners as the brand is one of the biggest mall tenants.
If the chain were to close a significant amount of stores, it’s predicted that the landlords would have some trouble filling the vacancies.
With negotiations at a standstill, the focus seems to have shifted to a potential Chapter 11 filing.
A Chapter 11 filing would help Forever 21 get rid of stores that are underperforming. This would therefore help recapitalize the business, reports Business of Fashion.
While nothing has been confirmed by Forever 21, we do know that a bankruptcy filing could result in multiple stores across Canada being shuttered for good.
Featured Image: Flickr
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