Forever 21 has reached a deal to sell off its assets for $81 million, four months after filing for Chapter 11 bankruptcy.
As part of the deal, the struggling fast-fashion retailer would be sold to a consortium made up of mall operators Simon Property Group and Brookfield Properties and brand management firm Authentic Brands Group, according to a Sunday court filing. The sale would include all of Forever 21’s assets, including its remaining stores and its beauty line, RileyRose.
The group has been designated as the “stalking horse bidder” for Forever 21 — meaning the deal remains subject to approval by a judge. Other potential buyers have until Feb. 7 to place bids for the company.
Forever 21 is among the many traditional retailers that have struggled to keep up amid the rise of online shopping, which has cut foot traffic to malls and brick-and-mortar stores. High debt levels and rent costs have also burdened traditional retailers.
In recent years, even healthy retailers have closed stores and struggling ones have filed for bankruptcy.
Read the source article at West Palm Beach News and Weather