Forever 21 has filed for Chapter 11 bankruptcy, becoming the latest retail chain to fall victim to challenges on the high street.
The global fashion brand has requested court protection from creditors in the US, joining more than 20 other retailers which have filed for bankruptcy in the last two years.
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With more than 800 stores across 57 countries, the 35-year-old group has struggled in recent years amid the rise of online competition and higher store costs.
As part of its restructuring, the firm plans to close as many as 350 outlets across the world, including nearly 200 in the US.
Last week Forever 21 also revealed plans to leave the Japanese market this month amid “continued sluggish sales”.
“We have requested approval to close up to 178 stores across the U.S. The decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords,” the company said in an email statement.
Filings show that the firm has secured $275m (£224m) in financing from existing lenders and $75m in new capital from TPG Sixth Street Partners and other affiliated funds.
Executive vice president Linda Chang described the moves as an “important and necessary step to secure the future of our company, which will enable us to reorganize our business and reposition Forever 21”.
Kirkland & Ellis LLP was serving as the company’s legal adviser, Alvarez & Marsal advised on restructuring, and Lazard acted as its investment banker.