The retailer will be selling all of its storefronts and brands.
Back in September, clothing retailer Forever 21 filed for chapter 11 bankruptcy. The retailer originally announced a plan to close several hundred of its storefronts in the United States and other countries in order to mitigate their leasing costs. However, in order for the business to continue operating in any capacity, they will require a new owner.
A consortium is looking to purchase Forever 21’s various assets for price tag of around $81 million. This purchase would include all of Forever 21’s active storefronts, as well as the rights to their makeup line, RileyRose. The consortium is made up of several property and brand management companies including Simon Property Group, Brookfield Properties, and Authentic Brands Group. The consortium has been designated as the “stalking horse group,” which means that they have first dibs on Forever 21 pending a federal judge’s approval and a February 7 deadline. Other interested parties can still make bids on Forever 21’s assets until this deadline has passed. This would be the second high-profile acquisition for Authentic Brands Group after their recent purchase and closing of the New York luxury department store brand Barneys.
A representative from Forever 21 spoke optimistically about the deal, saying, “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.”