As Taylor Swift sings in hit song ‘Blank Space’,
So it’s gonna be forever, or it’s gonna go down in flames.
It seems like the latter might be the likely scenario for fast fashion retail giant Forever 21.
According to a report on Bloomberg which cites people with knowledge of the plans, the Los Angeles-based firm is preparing for a potential bankruptcy filing.
The company is reported to have 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”.
The report added that 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”.
Founded in 1984 by Korean husband and wife team Do Won Chang and Jin Sook Chang, the first Forever 21 store opened its doors in Los Angeles.
As of 29 Aug 2019, the couple has a net worth of US$1.5 billion according to Forbes.
The chain is said to have 790 stores in 48 countries around the world, and is worth US$4 billion.
At its heyday, there were four Forever 21 stores in Singapore.
Currently, only the store at 313@Somerset remains.