Fashion retailer Forever 21 Inc. has filed for Chapter 11 bankruptcy protection and plans to close 44 stores across Canada.
Forever 21, which is based in the United States, said it plans to close most of its international locations, including Canada, but will continue operating in Mexico and Latin America. The retailer currently has 44 stores across Canada. Forever 21 said in a written statement that its Canadian stores will remain open during the liquidation process.
Forever 21 Inc. said it received $275 million U.S. in financing from its existing lenders with JPMorgan Chase Bank, N.A. (NYSE:JPM) as agent, and $75 million in new capital from TPG Sixth Street Partners, and certain of its affiliated funds. The company lists both assets and liabilities in the range of $1 billion to $10 billion, according to the U.S. Bankruptcy Court for the District of Delaware.
Forever 21 is the latest in a growing list of brick-and-mortar retailers to go under. Since 2017, more than 20 U.S. retailers, including Sears Holdings Corp. and Toys 'R' Us, have filed for bankruptcy, succumbing to the onslaught of fierce e-commerce competition from Amazon Inc. and other online players.
