LOS ANGELES: Fighting fashion retailers Forever 21 filed for Chapter 11 bankruptcy on Sunday (September 29th) as it joined a growing list of brick-and-mortar players who succumbed to e-commerce attacks.
As of early 2017, more than 20 US retailers, including Sears and Toys & # 39; R & # 39; Us, have filed for bankruptcy as more customers are switching to online retailers, such as Amazon.
Forever 21 has said it plans to leave most of its international locations in Asia and Europe, but will continue operations in Mexico and Latin America.
Established in 1984, the retailer has 815 stores in 57 countries. Last week, it announced it would exit Japan and close all 14 stores at the end of October.
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The company also lists assets and liabilities ranging from $ 1 billion to $ 10 billion, according to a US court filing for bankruptcy in Delaware County.
The retailer said it received $ 275m in financing from existing lenders with JPMorgan Chase Bank as an agent and $ 75m in new equity from TPG Sixth Street Partners and some of its affiliates.
With these assets, Forever 21 said he intends to do business as usual and will focus on a profitable core part of his business.
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Kirkland and Ellis served as the company's legal counsel, Alvarez and Marsal advised on restructuring, and Lazard acted as its investment banker.