Bankruptcy Law News

Forever 21’s Simple Capital Structure Could Ease Bankruptcy

Oct. 3, 2019, 10:31 AM

Forever 21’s simple capital structure and ownership could make it easier for the teen fashion retailer to weather its Chapter 11 bankruptcy despite declining foot traffic and an impasse in landlord negotiations.

Other major bankrupt brick-and-mortar retailers, such as Toys R Us Inc., Gymboree Inc. and Payless ShoeSource Inc., have struggled in their reorganization efforts, stymied by financial complexities. Family-owned Forever 21, in contrast, does not have crushing or convoluted lender liabilities nor debt from a leveraged buyout, restructuring experts say.

“I think it gives them more of a fighting chance than other retailers we’ve seen come through the gauntlet...

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