Forever 21 has officially filed for bankruptcy after they have tried different options on how to increase revenue. Last month we reported that the well-known retailer had been preparing to potentially file, and the time has officially come.
According to CNBC, Sunday night the company announced that they filed for Chapter 11 bankruptcy protection. The company reportedly received $275 million in financing from its current lenders with JPMorgan Chase and $75 million in new capital from TPG Sixth Street Partners.
The company has about 815 stores globally, and a spokesperson for the company says they have requested approval to close up to 178 stores in the U.S. However, they do not plan to close in any major markets in the U.S.
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Forever 21 reportedly plans to close most of its international locations in Europe and Asia but will continue to operate their business in Mexico and Latin America.
Yahoo reports, that the increase in online shopping has contributed tremendously to the retailer entering bankruptcy.
Earlier this month, songstress Ariana Grande reportedly sued the company for $10 million over a look-a-like ad campaign. Ari reportedly filed a lawsuit for alleged trademark infringement for stealing her name and likeness to promote and sell their products.
The company responded to the lawsuit and said, “Forever 21 does not comment on pending litigation as per company policy. That said, while we dispute the allegations, we are huge supporters of Ariana Grande and have worked with her licensing company over the past two years. We are hopeful that we will find a mutually agreeable resolution and can continue to work together in the future.”
Roommates, what are your thoughts?
Source: https://www.cnbc.com/2019/09/30/apparel-retailer-forever-21-files-for-bankruptcy.html
