Forever 21 Gets Approval for Vendor Vote on Settlement Proposal

Bankrupt Forever 21’s unpaid vendors will get a chance to decide whether to take a deal that would provide 11 cents on the dollar to satisfy more than $260 million in administrative claims.

Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware Wednesday allowed the fast-fashion retailer to seek creditors’ approval of the proposed settlement, overruling objections from the Justice Department’s bankruptcy watchdog about the voting process.

The U.S. Trustee said the disclosures detailing the proposed payout weren’t clear enough, and a two-step voting process would confuse creditors.

“We’re simply giving people a choice,” ...