Forever 21 plans nearly 200 store closures in second bankruptcy, Bloomberg News reports (updated)

Simon Property

19/02/2025 22:50

(Adds details from the report in paragraphs 3 and 5)
       Feb 19 (Reuters) - The U.S.-based operator of Forever 21
was preparing to close at least 200 more locations as part of a
bankruptcy process expected to kick off as soon as next month,
Bloomberg News reported on Wednesday, citing people with
knowledge of the matter.
    The potential bankruptcy is also looking for a buyer for the
retailer's remaining stores. However, if no qualified buyer
emerges, Forever 21 would likely liquidate its entire chain of
about 350 stores, the report added.
    Some of the stores slated to close have lost money for
years, Bloomberg said. Forever 21 has often withheld royalties
and rent payments elsewhere in order to keep them afloat, the
report added.
    The Forever 21 trademark and intellectual property are owned
by apparel chain operator Authentic Brands, which licenses them
to the operating company that would undergo a Chapter 11
process, Bloomberg said. 
    The U.S. operator of Forever 21 is called F21 OpCo. The
report added that the company is now a unit of JCPenney- and
Lucky-owner Catalyst Brands.
    According to Catalyst Brands' website, it operates SPARC
Group's brands Aéropostale, Eddie Bauer, Lucky Brand and
Nautica.
    The shareholders of Catalyst Brands include Simon Property
Group  SPG.N , Brookfield Corporation, Authentic Brands Group
and Shein.
    Authentic Brands' ownership of the Forever 21 brand would
remain intact through any bankruptcy process, Bloomberg said.
    It plans to license Forever 21 to other existing retailers
and distributors regardless of the outcome of the U.S.
operator's potential sale or liquidation in bankruptcy, one of
the people told Bloomberg. 
    Forever 21, Catalyst Brands and Authentic Brands did not
immediately respond to Reuters' requests for comment. 


 (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by
Alan Barona)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; X: https://twitter.com/AnanyaMariam))