FILES) In this file photo taken on September 12, 2019 a Forever 21 store stands in Union Square in Manhattan in New York City. – Global fast-fashion retailer Forever 21 said it was filing for voluntary bankruptcy on September 29, 2019, the latest US brick-and-mortar chain to embark on restructuring as shoppers migrate online. (Photo by Drew Angerer / GETTY IMAGES NORTH AMERICA /
FASHION retailer Forever 21 Inc filed for Chapter 11 bankruptcy on Sunday as it joined a growing list of brick-and-mortar players who have succumbed to the onslaught of e-commerce.
Since the start of 2017, more than 20 US retailers, including Sears Holdings Corp and Toys ‘R’ Us, have filed for bankruptcy as more customers shift to online retailers such as Amazon Inc.
The company lists both assets and liabilities in the range of US$1 billion to US$10 billion (RM4.18 billion to RM41.8 billion), according to the court filing in the US Bankruptcy Court for the District of Delaware.
The retailer said it received US$275 million in financing from its existing lenders with JPMorgan Chase Bank, NA as agent, and US$75 million in new capital from TPG Sixth Street Partners, and certain of its affiliated funds.
With these funds, Forever 21 said it intends to operate business as usual and will focus on the profitable core part of its operations.
Meanwhile, the company plans to close most of its international locations in Asia and Europe, but will continue operations in Mexico and Latin America.
Founded in 1984, the retailer has 815 stores in 57 countries. Last week, it said it would exit Japan and close all 14 stores at the end of October.
Kirkland & Ellis LLP was serving as the company’s legal adviser, Alvarez & Marsal advised on restructuring, and Lazard acted as its investment banker. – Reuters
Source : https://www.nst.com.my