Forever 21, an American fast-fashion retailer is seeking to shut down close to 178 stores in 40 countries after it filed for the chapter 11 bankruptcy protection, which involves re-organization of a debtor’s business affairs, debt and assets.
The move has been as a result of declining mall traffic due to digital competition, expensive leases and change of shopping habits.
In addition, the retailer obtained $275 million in financing from its existing lenders with JPMorgan Chase and $75 million in new capital from TPG Sixth Street Partners, as well as affiliated funds to help it support its operations in bankruptcy.
In a release, the firm said it plans to exit most of its international locations in Asia and Europe. It will, however, continue operations in Mexico and Latin America.
Forever 21 has over 700 stores in the Americas, Asia, the Middle East and the UK. The company sells accessories, beauty products, home goods and clothing for women, men and children.