Forever 21 intends to use these proceedings to facilitate a global restructuring that will allow the company to focus on a profitable core part of its operations. As part of its restructuring strategy, the company plans to exit most of its international locations in Asia and Europe, but will continue operations in Mexico and Latin America.
“This was an important and necessary step to secure the future of our company, which will enable us to reorganise our business and reposition Forever 21,” Linda Chang, executive vice president of Forever 21, Inc., said.
The company enjoys and benefits from decades-long relationships with its vendors, and dozens have already agreed to support Forever 21’s restructuring efforts. To facilitate its restructuring, Forever 21 has obtained $275 million in financing from its existing lenders with JPMorgan Chase Bank, N.A. as agent, as well as $75 million in new capital from TPG Sixth Street Partners, and certain of its affiliated funds. With this capital, Forever 21 intends to operate in a business as usual manner, honouring all company policies, including gift cards, returns, exchanges, reimbursement and sale purchases. Forever 21 will use these proceedings to right size its store base and return to basics that allowed the company to thrive and grow into the fast fashion leader.
“The financing provided by JPMorgan and TPG Sixth Street Partners will arm Forever 21 with the capital necessary to effect critical changes in the US and abroad to revitalise our brand and fuel our growth, allowing us to meet our ongoing obligations to customers, vendors and employees. With support from our key landlord and vendor constituents, we are confident we will emerge as a stronger, more competitive enterprise that is better positioned to prosper for years to come, and we remain committed to delivering the fast fashion trends that our customers have come to expect from Forever 21,” Chang added.
Fibre2Fashion News Desk (RKS)
Textiles | On 8th Mar 2021
In a major step towards recycling, scientists at Sweden’s Lund...
The textile testing service provider Hohenstein has developed its own ...
Textiles | On 6th Mar 2021
The Office of the United States Trade Representative recently...
Mandeep Nagi Shades of India
Women value something that is unique and has a flavour of India
Spokesperson Hugo Boss
'Hugo Boss works with carefully selected sourcing partners'
Textile Industry Head honchos
There's lot more potential in women than what we are witnessing today
Paolo Toricella
Electronics for Imaging (EFI) is a global technology company, based in...
Bora Akris
Realkom, headquartered in Istanbul, is a fully integrated textile company...
Priyanka Salot
The Sleep Company was established to upgrade the sleep quality of every...
Frank Heislitz Freudenberg
Freudenberg Performance Materials is a leading global manufacturer of...
Dr. Rene Wollert Freudenberg Nonwovens
Dr. Rene Wollert discusses the current scenario of the global nonwovens...
Melissa Tate University of New South Wales
<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...
Aditi Somani Aditi Somani
Aditi Somani specialises in luxury fusion wear with international cuts and ...
Amiben Shroff Shrujan
From its modest beginning in the late 1960s, Shrujan has grown into a...
Mike Hoffman Gildan Activewear SRL
Gildan Activewear, a manufacturer and marketer of branded clothing and...
Press Release
Letter to Editor
RSS Feed
Search Companies
editorial@fibre2fashion.com
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.