Forever 21 Inc. filed for bankruptcy protection, adding another big fashion merchant to the tally of retailers who couldn’t cope with high rents and heavy competition. Court papers filed in the Bankruptcy Court for the District of Delaware show Forever 21 has estimated liabilities on a consolidated basis of between $1 billion and $10 billion. A bankruptcy filing could help Forever 21 get rid of unprofitable stores and raise fresh funds. Founded in 1984, Forever 21 operates more than 800 stores in the US, Europe, Asia and Latin America. Co-founder Do Won Chang has been focused on maintaining a controlling stake in Forever 21, which hindered efforts to raise new funds.

Source: Mint September 30, 2019 02:03 UTC