Forever 21 prepares for potential bankruptcy filing: Bloomberg

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Forever 21 prepares for potential bankruptcy filing: Bloomberg
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Fashion retailer Forever 21 Inc is preparing for a potential bankruptcy filing, ...

FILE PHOTO: Women shop for clothes in clothing retail store Forever 21 in New York August 19, 2013. REUTERS/Lucas Jackson

- Fashion retailer Forever 21 Inc is preparing for a potential bankruptcy filing, Bloomberg reported on Wednesday, citing people with knowledge of the plans. The company has been in talks for additional financing and is working with a team of advisers to help restructure its debt, but negotiations with possible lenders have so far stalled, Bloomberg reported.

Forever 21 is looking to secure a potential debtor-in-possession loan to take the company into Chapter 11, even as some window remains to strike a last-minute deal, the report added.Reporting by Rama Venkat in Bengaluru; Editing by Maju Samuel

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