Forever 21 Asks Court to Rethink Chapter 7 Liquidation Order

Forever 21 Inc. is seeking to undo a court ruling that a Chapter 7 trustee liquidate the bankruptcy estate’s remaining assets instead of allowing it to control its own liquidation under Chapter 11.

The fashion retailer has sold most its business to a group of landlords since filing for Chapter 11 a year ago. Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware earlier this month ordered the case to convert from Chapter 11 to Chapter 7, accepting the U.S. Trustee’s argument that the company’s bankruptcy estate is unlikely to get a reorganization plan confirmed. ...