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Forever 21 announces tentative deal to come out of bankruptcy, stay open

Forever 21 filed for bankruptcy and will close hundreds of stores
Posted at 7:17 AM, Feb 04, 2020
and last updated 2020-02-04 07:17:28-05

Fast-fashion chain Forever 21 announced it reached a tentative $81 million agreement with a buyer to come out of bankruptcy and keep its retail and e-commerce stores open.

"Forever 21 filed a motion with the bankruptcy court seeking approval to sell the Forever 21 business to a new owner," Forever 21 told ABC News in a statement Monday.

PREVIOUS COVERAGE | Retailer Forever 21 reportedly preparing to file for bankruptcy

"Once approved the agreement will allow Forever 21 to come out of bankruptcy, keeping its headquarters, stores and E-commerce operations open, providing fashions and trends that customers know and love for years to come," the statement added.

In a bankruptcy motion, the company revealed Simon Property Group, Brookfield and Authentic Brands Group, and others were among a coalition of buyers bidding $81 million to purchase the once-iconic mall staple.

The mall owners Simon Property Group and Brookfield are among Forever 21's biggest landlords, the Wall Street Journal reported. Authentic Brands Group is the company that recently swooped in and bought the iconic New York City-based retailer Barneys after it filed for bankruptcy

Forever 21 announced it was filing for bankruptcy in late September, joining a growing list of brick-and-mortar retail brands that have struggled in recent years with the rise of e-commerce giants and changing consumer tastes.