Another familiar sight in your local shopping mall may not last much longer.
Forever 21 has filed for chapter 11 bankruptcy protection. The plan is to reorganize some of its debt in order to continue operations. The retailer does plan to close some of its 500 stores, pending approval from the courts.
The filing, in Delaware, lists between $1 billion and $10 billion in debt to more than 100,000 creditors, with assets in that same range. (NBC News)
Hot Takes:
- The store says returns policies are intact and all gift cards will be honored, but I wouldn’t wait forever.
- There’s just not as much foot traffic in the mall anymore. This is going to keep happening.
- 100,000 creditors is an insane number, even if you factor in companies like shipping firms and landlords.