US teen fashion retailer Forever 21 has reached a deal to sell off its assets for a reported US$81m, four months after filing for bankruptcy.
A bankruptcy court filing yesterday (2 February) revealed a consortium comprising Simon Property Group, Brookfield Property Partners, and Authentic Brands Group, will potentially acquire substantially all of Forever 21’s assets.
The so-called “stalking horse” agreement sets a minimum price for a proposed auction later this month. If no other bidders step forward, the consortium would be declared the winner. Other potential buyers have until 7 February to place bids for the company.
The US fast-fashion retailer and its US subsidiaries filed for bankruptcy protection in September last year, and announced plans to exit most international locations in Asia and Europe. It had planned to use the proceeds to facilitate a global restructuring that will allow the company to focus on a “profitable core part of its operations.”
A spokesperson for Forever 21, said: “Forever 21 filed a motion with the bankruptcy court seeking approval to sell the Forever 21 business to a new owner. Once approved the agreement will allow Forever 21 to come out of bankruptcy, keeping its headquarters, stores and e-commerce operations open, providing fashions and trends that customers know and love for years to come.”
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