1. https://longhaircareforum.com/threads/no-maintenance-scheduled.848583/
    Dismiss Notice

Forever 21 Prepares For Potential Bankruptcy

Discussion in 'News - Breaking News & Political Forum' started by SoopremeBeing, Aug 29, 2019.

  1. SoopremeBeing

    SoopremeBeing Well-Known Member

    Blog Posts:
    0
    Joined:
    Dec 22, 2010
    Messages:
    17,390
    Likes Received:
    94,620
    Trophy Points:
    113
    Location:
    The 7 Cities
    Strange....they just opened a bunch of new stores and they had the recent Baby Phat re-launch...

    upload_2019-8-29_13-39-30.jpeg


    Forever 21 Inc. is preparing for a potential bankruptcy filing as the fashion retailer’s cash dwindles and turnaround options fade, according to people with knowledge of the plans.

    The company has been in talks for additional financing and working with a team of advisers to help it restructure its debt, but negotiations with possible lenders have so far stalled, the people said. Focus has thus shifted toward securing a potential debtor-in-possession loan to take the company into Chapter 11, they said, even as some window remains to strike a last-minute deal that keeps it out of court.
    Representatives for Forever 21 didn’t respond to a request for comment.

    A bankruptcy filing would help the company shed unprofitable stores and recapitalize the business, said the people, who requested anonymity discussing private negotiations. Yet it could also be problematic for the country’s major mall owners, including Simon Property Group Inc. and Brookfield Property Partners LP. Forever 21 is one of the biggest mall tenants still standing after a wave of bankruptcies in the retail sector.

    Empty Spaces
    If the chain were to close a significant number of stores as part of the restructuring, its landlords could have trouble filling the vacancies. Indianapolis-based Simon counts Forever 21 as its sixth-largest tenant excluding department stores, with 99 outlets covering 1.5 million square feet, according to a filing as of March 31.

    Co-founder Do Won Chang has been focused on maintaining a controlling stake in Forever 21, which has limited its fundraising options.

    A faction of company officials, without the approval of Chang, had asked its biggest landlords to consider taking a stake in the retailer amid a disagreement within its leadership, Bloomberg previously reported.
     
  2. Dposh167

    Dposh167 Well-Known Member

    Blog Posts:
    0
    Joined:
    Nov 4, 2007
    Messages:
    19,619
    Likes Received:
    95,824
    Trophy Points:
    113
    Location:
    NYC
    This clearly is a case of bad financial management internally. Or expanding too quickly and not getting rid of poor performing stores a long time ago..etc. Their market still likes cheap clothes so it cant be people are abadoning them. I always though F21 was doing fairly well
     
    Last edited: Aug 29, 2019
  3. ThirdEyeBeauty

    ThirdEyeBeauty Well-Known Member

    Blog Posts:
    0
    Joined:
    Oct 16, 2011
    Messages:
    3,496
    Likes Received:
    12,084
    Trophy Points:
    113
    Maybe they realized it would cost too much to import the cheap clothes they received from China.
     
  4. bellatiamarie

    bellatiamarie Well-Known Member

    Blog Posts:
    0
    Joined:
    Dec 12, 2009
    Messages:
    2,021
    Likes Received:
    19,396
    Trophy Points:
    113
    Idk.... with the fashion novas and sheins and boohoos popping up overnight I’m not surprised. Not to mention the thousands of Instagram boutiques with all this cheap tight yeast infection producing clothing that certain demographics :look: tend to be drawn to. F21 is not really dominating the market as in days past.
     
    Nat1984, reallynow, kupenda and 25 others like this.
  5. msbettyboop

    msbettyboop Well-Known Member

    Blog Posts:
    0
    Joined:
    Oct 19, 2009
    Messages:
    3,495
    Likes Received:
    15,512
    Trophy Points:
    113
    Location:
    My Creative College
    Their clothes suck...
     
  6. ava2

    ava2 Well-Known Member

    Blog Posts:
    0
    Joined:
    Jan 11, 2010
    Messages:
    2,311
    Likes Received:
    13,599
    Trophy Points:
    113
    Welp.

    Between Amazon and other fast fashion outlets can’t say I didn’t see this coming.
     
    kupenda and OhTall1 like this.
  7. meka72

    meka72 Well-Known Member

    Blog Posts:
    0
    Joined:
    Jan 2, 2014
    Messages:
    8,140
    Likes Received:
    39,505
    Trophy Points:
    113
    :lachen:
     
  8. Laela

    Laela Sidestepping the "lynch mob"

    Blog Posts:
    0
    Joined:
    Oct 22, 2002
    Messages:
    17,856
    Likes Received:
    35,848
    Trophy Points:
    113
    If the stores are indicative of management: Cheap clothes..stores are always disorganized and clothes strewn all over the place.. then, it's no surprise.
     
  9. Theresamonet

    Theresamonet Well-Known Member

    Blog Posts:
    0
    Joined:
    Oct 14, 2008
    Messages:
    16,619
    Likes Received:
    188,348
    Trophy Points:
    113
    Location:
    Chicago
    The store here on Michigan Ave is closing. I wondered what was going on.
     
  10. Southernbella.

    Southernbella. Well-Known Member

    Blog Posts:
    0
    Joined:
    Oct 11, 2005
    Messages:
    32,467
    Albums:
    1
    Likes Received:
    306,230
    Trophy Points:
    113
    Location:
    Drunk in love
    I've gotten some cute all-cotton dresses from there but I can't say I'll miss the store.
     
  11. Lymegreen

    Lymegreen Well-Known Member

    Blog Posts:
    0
    Joined:
    Mar 19, 2012
    Messages:
    1,394
    Likes Received:
    5,486
    Trophy Points:
    113
    Business much like consumers are in their eyeballs in debt.

    This whole thing hinges on their ability to get another loan ei monthly payment.

    I wonder how many other businesses will follow this same road when money dries up.
     
  12. RoundEyedGirl504

    RoundEyedGirl504 Well-Known Member

    Blog Posts:
    0
    Joined:
    Nov 25, 2008
    Messages:
    19,503
    Likes Received:
    161,601
    Trophy Points:
    113
    Location:
    Bay Area
    Sears and JCPenney have been on life support living off of debt for the past decade. Forever 21 may be able to pull it out. I noticed they have had a sales every week for the past 6 months at least. 70-80% off.
     
    kupenda, meka72, MissNina and 2 others like this.
  13. Covagirlm

    Covagirlm CGB

    Blog Posts:
    0
    Joined:
    May 24, 2004
    Messages:
    5,705
    Likes Received:
    63,337
    Trophy Points:
    113
    Location:
    NY

    Oh my :lachen:we look good!


    They have too many stores, everyone is shopping online now.
     
  14. bellatiamarie

    bellatiamarie Well-Known Member

    Blog Posts:
    0
    Joined:
    Dec 12, 2009
    Messages:
    2,021
    Likes Received:
    19,396
    Trophy Points:
    113
    :lol: some of y’all look goodt but otherrrrrs :look:.... but that ain’t my business.
     
  15. MissNina

    MissNina Libra Girl

    Blog Posts:
    0
    Joined:
    Jun 7, 2003
    Messages:
    7,378
    Likes Received:
    39,612
    Trophy Points:
    113
    Location:
    Where you vacation
    Listen. Idc, if you know how to shop, F21 is that hit lol I also get like allllll my loungewear and tanks from there. $1.80 spaghetti tanks & $3.80 leggings ALL DAY. This news hurt my heart lol

    Fashion Nova = Rainbow.
     
  16. MizAvalon

    MizAvalon Well-Known Member

    Blog Posts:
    0
    Joined:
    Jun 3, 2004
    Messages:
    69,587
    Likes Received:
    108,773
    Trophy Points:
    113
    Location:
    Somewhere hiding my hair
    I can’t believe those dinosaurs still exist.
     
  17. HappilyLiberal

    HappilyLiberal Well-Known Member

    Blog Posts:
    0
    Joined:
    Dec 11, 2009
    Messages:
    17,505
    Likes Received:
    90,027
    Trophy Points:
    113
    Dress Barn is closing too. They sent my mom a 40 percent off coupon and told her the last day she can use her charge card is October 31st.
     
    Laela likes this.
  18. msbettyboop

    msbettyboop Well-Known Member

    Blog Posts:
    0
    Joined:
    Oct 19, 2009
    Messages:
    3,495
    Likes Received:
    15,512
    Trophy Points:
    113
    Location:
    My Creative College
    Noooooooooooo. I've gotten some incredible bargains there over the years :(
     
    prettyinpurple likes this.
  19. Sarabellam

    Sarabellam Well-Known Member

    Blog Posts:
    0
    Joined:
    Feb 19, 2018
    Messages:
    336
    Likes Received:
    2,131
    Trophy Points:
    93
    If they “close” they might pull a New York and Company and sell cheap clothes exclusively online.
     
  20. Dposh167

    Dposh167 Well-Known Member

    Blog Posts:
    0
    Joined:
    Nov 4, 2007
    Messages:
    19,619
    Likes Received:
    95,824
    Trophy Points:
    113
    Location:
    NYC
    Ny and Company never closed. They still have physical stores. Do you mean The Limited?
     
  21. Laela

    Laela Sidestepping the "lynch mob"

    Blog Posts:
    0
    Joined:
    Oct 22, 2002
    Messages:
    17,856
    Likes Received:
    35,848
    Trophy Points:
    113
    Not surprising...considering its parent company's stock is a whopping $.0.30

    Stock price: ASNA (NASDAQ) $0.30 -0.03 (-9.77%) as of Sep 13, 3:36 PM EDT

     

Share This Page