Forever 21 prepares for potential bankruptcy filing: Bloomberg

Reuters

Posted at Aug 31 2019 03:53 PM

Forever 21 prepares for potential bankruptcy filing: Bloomberg 1
FILE PHOTO: A shopper looks at accessories sold at bargain prices during a Forever 21 sale in Manila, August 31, 2017. Katrina Domingo, ABS-CBN News/File

Fashion retailer Forever 21 Inc is preparing for a potential bankruptcy filing, Bloomberg reported earlier this week, citing people with knowledge of the plans.

The company has been in talks for additional financing and is working with a team of advisers to help restructure its debt, but negotiations with possible lenders have so far stalled, Bloomberg reported.

Forever 21 is looking to secure a potential debtor-in-possession loan to take the company into Chapter 11, even as some window remains to strike a last-minute deal, the report added.

The company did not immediately respond to a Reuters request for comment.