Report: Forever 21 preparing for potential bankruptcy

Consumer Reports

TYLER, Texas (KETK) – Clothing retailer Forever 21 could be preparing documents to file for bankruptcy, according to a report by Bloomberg News.

It states that the company has been working with consultants in an effort to restructure its debt. They have also been looking for additional financing, but nothing has come through.

According to Bloomberg, bankruptcy could actually help Forever 21’s bottom line, because it would be able to recapitalize and get rid of stores that aren’t making money.

But the move could cause problems for mall owners, since the company has a significant mall presence.

Forever 21 was founded in 1984 and currently operates more than 800 stores around the world.

There is one store in Tyler on South Broadway Ave.

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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