Forever 21 filed for Chapter 11 bankruptcy protection Sunday with the goal of implementing a global restructuring of its business.
The strongest piece of its business is in the U.S., and the company says it plans to close most of its stores in Asia and Europe while continuing to operate in Mexico and Latin America.
In a press release, Forever 21 said it will use the bankruptcy process to right-size its store base and return to the basics that “allowed the company to thrive and grow into the fast-fashion leader.”
Forever 21 lined up $275 million from JP Morgan Chase and $75 million in new capital from TPG Sixth Street to finance the restructuring.
Forever 21 currently operates 549 stores in the U.S. and 251 stores internationally.
