Popular clothing retailer Forever 21 is preparing for a potential bankruptcy filing.
Bloomberg reported the company has been in talks for additional financing and working on restructuring its debt, “but negotiations with possible lenders have so far stalled.”
The report states that if Forever 21 were to close a lot of its stores as part of their restructuring, it would have troubles filling the vacancies.
Earlier this year, a landmark Canadian location of the retail chain closed its doors in Toronto.
- Forever 21 at Yonge and Dundas is closing
- Forever 21 on Robson Street is closing its doors this month
The massive store at the corner of Yonge and Dundas, in the heart of downtown, had been open since 2007.
Last year, the clothing store also closed down one of its major downtown Vancouver locations on Robson Street.
According to Bloomberg, sources tell them “a bankruptcy filing would help the company shed unprofitable stores and recapitalize the business.”
Forever 21 has more than 35,000 employees and 600 stores worldwide including the United States, China, Europe, Hong Kong, India, Israel, Japan, Korea, Latin America, Mexico, Philippines,United Kingdom, and here in Canada.