LOS ANGELES - Popular clothing retailer Forever 21 Inc. is considering filing for bankruptcy, according to a report from Bloomberg Business.
The publication reported that anonymous sources close to the company said the retailer is preparing for a possible Chapter II filing.
Forever 21, which was founded in 1984, has seen its cashflow dwindle. Bloomberg reported that the company has been in talks for additional funding and working to restructure debt, but negotiations with possible lenders came to a standstill.
Now the company is looking toward the bankruptcy filing, according to Bloomberg, which could help the company get rid of stores that don’t make enough money and restructure the business.
The clothing company operates more than 800 stores all over the world.