Bankruptcy Forever 21
American fashion chain Forever 21 declared bankruptcy under Chapter 11. The current situation of the company is a result of competition from online stores, including Amazon, which caused a wave of bankruptcy in the USA.
The company will be able to continue to operate and the bankruptcy proceedings will protect it from enforcement by creditors. In the course of the proceedings, Forever 21 is engaged in a reorganisation of its activities and the establishment of a creditors’ repayment plan, which will then be approved by the Court.
The Company’s liabilities as indicated in the application are estimated at USD 1-10 billion.
Forever 21 currently has more than 800 stores in Europe, Asia, the USA and Latin America, but due to its current situation it intends to close most of the stores in Europe and Asia.