After The Cash Shortage, Forever 21 Will Apply For Bankruptcy As Early As This Sunday.

According to foreign media reports, people familiar with the matter said that the US fast brand Forever 21 Inc. will be filing for bankruptcy protection as early as this Sunday after months of cash shortages.

In the past few months, the company has been looking for new loans to avoid bankruptcy, people familiar with the matter said. The company will submit a bankruptcy petition in Delaware, a person familiar with the matter said. One insider said Forever 21 plans to close some bankrupt stores, which now have more than 700 stores bankrupt.

Forever 21 did not immediately respond to requests for comment.

The company was held by a minority shareholder and was founded in 1984. It operates in dozens of countries and sells 5 yuan tops and 20 dollar dresses. But after a period of rapid growth and expansion, including the establishment of large stores in New York and Las Vegas, the sales growth of the chain has slowed down.

Faced with these difficulties, the company began negotiations with its landlord, hoping to reduce the size of the lease and renegotiate the lease.

Like many retailers (especially those who put a large number of businesses in shopping center stores), Forever 21 traffic decreases as consumers spend more time on online shopping.

According to people familiar with the matter, Forever 21 hired Kirk LLP Kirkland&Ellis LLP as a restructuring consultant and hired young Delaware law firm Conaway Stargatt&Taylor LLP as a bankruptcy lawyer. They said the company is also working with Alvarez Marshall law firm (Alvarez&Marsal) to hire them as financial advisers.

These law firms did not immediately respond to requests for comment.