American fashion chain Forever 21 is moving closer to bankruptcy, as final negotiations with potential investors seem to have ended without an agreement.
Chapter 11 started
Press agency Bloomberg says the company is trying to protect itself against bankruptcy using the Chapter 11 procedure, which means that debts can be repaid later. Moreover, the procedure makes it easier to close badly performing stores. The chain, that aims for roughly the same target audience as Primark and H&M, has been struggling financially for years, but talks with potential investors have always ended in failure.
Forever 21 was founded in 1984 and runs over 600 stores worldwide. In the Benelux, the chain has one store left (Rotterdam), after completely shutting down its Belgian branch.