Forever 21 prepares for possible bankruptcy filing – sending fans of the teen retailer into a Twitter frenzy over potential closing down sales
- Teen fashion retailer Forever 21 is reportedly preparing for potential bankruptcy
- The company has been in talks for additional financing and is working with a team of advisers to help restructure its debt
- Negotiations so far with possible lenders have stalled, Bloomberg sources say
- As soon as news broke of the potential bankruptcy filing, people flooded Twitter with plans to snap up already heavily-discounted clothing from the retailer
Forever 21 is reportedly preparing for potential bankruptcy and fans of the teen clothing retailer are already putting plans in place for possible closing down sales.
The company has been in talks for additional financing and is working with a team of advisers to help restructure its debt, but negotiations with possible lenders have so far stalled.
The news of potential bankruptcy was reported by Bloomberg on Wednesday, citing sources with knowledge of the negotiations.
The company is considering filing for Chapter 11 amid falling sales and is looking to secure a potential debtor-in-possession loan.
Forever 21 is reportedly preparing for potential bankruptcy and fans of the teen clothing retailer are already putting plans in place for possible closing down sales
Forever 21, which was founded in Los Angeles, has 800 stores globally.
A bankruptcy filing would allow the retailer to get rid of its unprofitable stores – a fact enthusiastic Twitter users were very quick to point out.
As soon as news broke of the potential bankruptcy filing, people flooded Twitter with plans to snap up already heavily-discounted clothing from the retailer.
Many posted memes of the frenzy any future closing down sales could bring.
‘Me thinking about all the Forever 21 employees who will be losing their jobs. But also thinking about the bankruptcy sale,’ one person tweeted.
‘Forever 21 is possibly declaring bankruptcy which honestly is a real 30 and over move,’ another user tweeted.
As soon as news broke of the potential bankruptcy filing, people flooded Twitter with plans to snap up already heavily-discounted clothing from the retailer
Another said: ‘Forever 21 filling for bankruptcy is probably the best thing to happen right now because I need new clothes’.
Others, who were less sympathetic, noted the retailer could be losing money due to its latest line of Flamin’ Hot Cheetos and United States Postal Service themed clothing collections.
‘Forever21 stores looking at their stock and wondering what they’re gonna do with all of their unsold sequin “taco tuesdays” crop tops and glitter emoji booty shorts after filing for bankruptcy,’ one person tweeted.
Another wrote: ‘With Forever 21 going bankrupt, I have no idea where I’m going to get dresses displayed as size 14 that are actually size 4.’
The company did not immediately respond to comment.
