Report: Forever 21 preparing for potential bankruptcy
NEW YORK, NY - FEBRUARY 07: Singer Cody Simpson performs at Forever 21 Fifth Avenue New York Store Opening at Forever 21 Fifth Avenue on February 7, 2015 in New York City. (Photo by Monica Schipper/Getty Images)
(CNN) – Clothing retailer Forever 21 may be getting ready to file for bankruptcy.
Bloomberg News reports that the company is preparing for a Chapter 11 filing.
Forever 21 has been working with consultants in an effort to restructure its debt.
The company has also been trying to get additional financing, but so far 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.