US’s Forever 21 bought back from bankruptcy

US’s Forever 21 bought back from bankruptcy

Monitoring Desk

LONDON: Retailer Forever 21 has been saved from bankruptcy by three buyers who want to expand internationally. New owners, Authentic Brands, Simon Property and Brookfield Property, also want to keep open most of the chain’s 448 US stores.

Forever 21 filed for bankruptcy last September as losses mounted from its international locations.

As part of its revamp, it plans to launch new lines of jewellery, footwear and handbags.

The fashion retailer is also looking for a new chief executive to drive the company forward.

Its three owners want to work with new and existing partners to expand in Europe, the Middle East and South East Asia, along with China.

Forever 21 has around 600 stores globally across 57 countries.

When it announced last year it had filed for Chapter 11 bankruptcy protection in the US, Forever 21 said it planned to exit most locations in Asia and Europe, but would remain in Mexico and Latin America.

Some analysts said the retailer had lost its way and fallen out of favour with young US shoppers who preferred cheaper clothing.

Headquartered in Los Angeles, Forever 21, like many of its bricks-and-mortar rivals, has struggled with rising competition from online retailers.

Authentic Brands is a brand management company, Simon Property operates malls and Brookfield Property runs commercial properties. (BBC)

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