New York - Fashion retailer Forever 21 Inc filed
for Chapter 11 bankruptcy on Sunday as it joined a growing list
of brick-and-mortar players who have succumbed to the onslaught
of e-commerce.
Since the start of 2017, more than 20 U.S. retailers,
including Sears Holdings Corp and Toys 'R' Us, have
filed for bankruptcy as more customers shift to online retailers
such as Amazon Inc.
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The company lists both assets and liabilities in the range
of $1 billion to $10 billion, according to the court filing in
the U.S. Bankruptcy Court for the District of Delaware.
The retailer said it received $275 million in financing from
its existing lenders with JPMorgan Chase Bank, N.A. as agent,
and $75 million in new capital from TPG Sixth Street Partners,
and certain of its affiliated funds.
With these funds, Forever 21 said it intends to operate
business as usual and will focus on profitable core part of its
operations.
Meanwhile, the company plans to close most of its
international locations in Asia and Europe, but will continue
operations in Mexico and Latin America.
Founded in 1984, the retailer has 815 stores in 57
countries. Last week, it said it would exit Japan and close all
14 stores at the end of October.
Kirkland & Ellis LLP was serving as the company's legal
adviser, Alvarez & Marsal advised on restructuring, and Lazard
acted as its investment banker.