Fashion giant Forever 21 is preparing for a potential bankruptcy filing, Bloomberg reports.
As their cash dwindles, the company has been negotiating with possible lenders, but none have come through so far.
Now, attention has turned to securing a debtor-in-possession loan so that they might file for Chapter 11.
Chapter 11 is a form of bankruptcy that involves a "re-organization of a debtor's business affairs, debts, and assets."
This is typically used by companies who require time to restructure their debts, and also gives the debtor a "fresh start".
However, it seems that it would not be the complete end of Forever 21 should the bankruptcy take place.
According to CNBC, that would likely result in a "slimmer fleet of stores", as opposed to the brand disappearing off the face of earth.
Nonetheless, landlords might find themselves under pressure, as Forever 21 is considered a sizeable tenant in the market.
The retailer has over 800 stores in the U.S., Europe, Asia, and Latin America.
At its peak, the fashion brand had four stores in Singapore, but is currently left with one last outlet at [email protected]
Top image via @giladiskon_fashion and @ericadianetay on Instagram