Forever 21 filed for bankruptcy on Sep. 29, 2019.

Files for bankruptcy

Fast fashion retailer Forever 21 has filed for Chapter 11 bankruptcy protection on Sep. 29, 2019.

Chapter 11 involves a “re-organization of a debtor’s business affairs, debts, and assets”.

This helps the retailer restructure debts and gives the debtor a "fresh start".

According to the news release, Forever 21 obtained US$275 million in financing from its existing lenders with JPMorgan Chase Bank, N.A. as the agent, and US$75 million in new capital from TPG Sixth Street Partners, as well as some of its affiliated funds.

The filing comes after attempts to negotiate with possible lenders in late August.

The executive vice president of Forever 21, Linda Chang, called it an "important and necessary step to secure the future" of the company. 

Closing down retail shops in Asia and Europe

Forever 21 has also announced its plan to close down most of its outlets in Asia and Europe.

It will, however, continue its operation in Mexico and Latin America.

It will close up to 178 outlets out of over 800 stores worldwide, according to CNN.

At its peak, the fashion brand had four stores in Singapore but is currently left with one last outlet at 313@somerset.

Top photo from Arthur Naing Win Aung