Forever 21 Banking – Forever 21 bankruptcy files for the second time in six years

Forever Fashion Fashion 21 has advanced bankruptcy in Chapter 11 for the second time in six years, as it faces the decrease in the traffic center traffic and increased competition from online platforms. The company stated that it will liquidate liquidation sales in its American stores while it is undergoing a sale and marketing from the Court of Supervision for its assets.

Despite the deposit, Forever 21 confirmed that its American stores, as well as its location on the web, will continue to operate, while the unattended international operations remain. The retail seller’s assets are estimated at $ 100 million and $ 500 million, while obligations range between one billion dollars and 5 billion dollars, with more than 10,001 creditors.

Previous reports stated that Forever 21 was considering closing at least 200 additional sites as part of bankruptcy procedures, which is expected to start in March.

According to a report issued by Bloomberg in February, people were martyred with knowledge, if a qualified buyer was not found for his remaining stores, the company was considering liquidating a full series of approximately 350 stores.

The decision to close these potential stores was affected by years of financial losses that incurred them, which led to the blocking of royalties and lease payments to maintain operations. The company also planned liquidation sales in its stores at the same time “to perform a sale and marketing process under the supervision of the court for some or all its assets.”

If a successful sale is performed, Forever 21 said it might move away from the full operations of the operations to facilitate continuous treatment.