Forever 21 files for bankruptcy

LOS ANGELES: Struggling fashion retailer Forever 21 Inc said on Sunday (Sep 29) it has filed for Chapter 11 bankruptcy protection to restructure its business.

The retailer’s bankruptcy marks another casualty among brick-and-mortar players, who have suffered from changing consumer trends of shopping online as opposed to visiting malls.

Forever 21 said it received US$275 million in financing from its existing lenders with JPMorgan Chase Bank, N.A. as agent, and US$75 million in new capital from TPG Sixth Street Partners, and certain of its affiliated funds.