Teen clothing retailer Forever 21 reportedly preparing to file bankruptcy

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Forever 21, which is privately held, has more than 800 stores in 57 countries. And while many retailers have been working on their network of stores in recent years.

The ability to get out of the market and the bottom line is one of the advantages of affords to retailers.

The company did not respond to requests for comment.

Traditional brick-and-mortar retailers who specialize in selling clothes to teens and young adults have had a particular hard time in recent years.

Among the retailers in the segment that filed for Wet Seal, American Apparel and Delia's. Aeropostale also filed for bankruptcy in 2016 but has kept some of its stores open.

Many retailers have run into trouble or have been bought by private equity firms or hedge funds. Forever Goal 21 is still owned by its founders, Do Won and Jin Sook Chang. A husband and wife team, the Changs immigrated from South Korea in 1981 and started the chain with a single 900 square-foot store in Los Angeles and only $ 11,000 in savings.

Forbes lists the net worth of $ 1.5 billion, and the privately-held company has annual sales of $ 3.4 billion and 30,000 employees.
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Bloomberg reported in June that some members of Forever 21 management had asked for some of its landlords to take a stake in the company as a way of coming up with funds it needs.

Mall owner Simon Property Group (GSP), for which Forever 21 is a major holding, took a stake in Aeropostale during its bankruptcy process. In July Simon Property CEO David Simon told investors he was open to working with other people facing trouble, without mentioning any by name.

"We'll work together on other distressed situations, and let's face it, there are some out there," Simon said. "But we're only going to buy into companies, we think, have brands and that's worth doing it."

But Bloomberg reported on Thursday that it has been trying to maintain control of the company in any restructuring, and that it does not have the ability to do so.

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