Forever 21 prepares for potential bankruptcy filing: Bloomberg
FILE PHOTO: Women shop for clothes in clothing retail store Forever 21 in New York August 19, 2013. REUTERS/Lucas Jackson
(Reuters) – Fashion retailer Forever 21 Inc is preparing for a potential bankruptcy filing, Bloomberg reported on Wednesday, citing people with knowledge of the plans.
The company has been in talks for additional financing and is working with a team of advisers to help restructure its debt, but negotiations with possible lenders have so far stalled, Bloomberg reported.
Forever 21 is looking to secure a potential debtor-in-possession loan to take the company into Chapter 11, even as some window remains to strike a last-minute deal, the report added.
The company did not immediately respond to a Reuters request for comment.
Reporting by Rama Venkat in Bengaluru; Editing by Maju Samuel