Forever 21 Exploring Restructuring Options
Fast-fashion retailer Forever 21 is exploring restructuring options, according to a Bloomberg story.
The company is looking for financing to shore up liquidity and keep founder Do Won Chang in control.
Bloomberg also said the company has spoken to Apollo Global Management about debtor in possession financing if bankruptcy becomes an option.
Forever 21 operates hundreds of stores in the U.S., Europe, Latin America and Asia. The international business may be hurting the company overall, according to Bloomberg.
In the U.S., the company is one of the largest retail tenants for mall owners, and could cause a lot of pain if Forever 21 closes a significant number of stores.
Forever 21 started with one, 900-square-foot store in Los Angeles, where the company is based. Now, the average Forever 21 store is 38,000 square feet.