Fashion retailer Forever 21 Inc petitioned for bankruptcy on Sunday, as it joined a developing rundown of brick-and-mortar players who have capitulated to the surge of internet business organizations, for example, Amazon.com Inc.
Since the beginning of 2017, more than 20 American retailers, including Sears Holdings Corp and Toys 'R' Us, have sought for bankruptcy as more clients shop on the web and shun enormous shopping centers.
Forever 21 stated the rebuilding will enable it to concentrate on the beneficial centerpiece of its tasks and shut some worldwide areas.
Established in 1984, the retailer stated it has 815 stores in 57 nations.
The organization intends to close the greater part of its stores in Asia and Europe. In any case, it doesn't hope to leave any significant markets in the U.S.
A week ago, Forever 21 had stated it would leave Japan and close each of the 14 stores toward the finish of October.
The organization likewise stated its Canadian subsidiary filed for bankruptcy and it intends to unwind the business, shutting 44 stores in the nation.
Forever 21 will proceed with tasks in Mexico and Latin America.
The organization lists both resources and liabilities in the scope of $1 billion to $10 billion, as indicated by the court documents in the U.S. Liquidation Court for the District of Delaware.
The retailer stated it got $275 million in financing from its current moneylenders with JPMorgan Chase Bank, N.A. as a specialist, and $75 million in crisp capital from TPG Sixth Street Partners, and some of its associated assets.
Kirkland and Ellis LLP was filling in as the organization's lawful consultant, Alvarez and Marsal exhorted on rebuilding, and Lazard went about as its venture banker.