Forever 21 Reportedly Prepares For Bankruptcy Filing

Forever 21 might be in trouble as the clothing retailer is reportedly eyeing bankruptcy, Bloomberg reported on Wednesday (August 28).

As per the report, the filing could leave the brand's more than 800 locations in limbo and that might be a problem for many of the malls across the United States, who devote space to the retailer. While the store has been in talks "for additional financing and working with a team of advisers to help it restructure its debt," the conversations have stalled and the focus has seemingly shifted towards securing a potential debtor-in-possession loan. Forever 21 is reportedly the sixth-largest tenant excluding department stories.

In short, the filing would help Forever 21 close unprofitable locations. The chain opened in 1984 and has stores in Europe, Asia and Latin America.

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