Forever 21 Talks With Owners Will Be Deadlocked And Shops Will Further Expand.

According to people familiar with the matter, negotiations on the bankruptcy restructuring plan of the US fast fashion giant Forever 21 are again deadlocked.

According to the person familiar with the matter, Forever 21 hopes to retain part of the equity stake in the group store owners under the premise of retaining the controlling stake in Do Won Chang, Zhang Dongwen. But the owners of the US commercial real estate giant Simon Property Group Inc. and commercial real estate company Brookfield Property Partners LP did not accept their proposal.

The breakdown of negotiations means that Forever 21 will not have any ready-made restructuring plans to submit bankruptcy protection applications to the court in the future. This will not only lengthen the reorganization time of the company, but also make the reorganization process more complicated.

Because of the poor overall environment of the retail industry, many retailers in the United States have gone bankrupt. According to a report released by Coresight Research in September 27th, 8567 retail outlets have been closed this year.

At present, Forever 21 has about 600 stores in the US. If the brand declares bankruptcy, a big closet will inevitably have a great impact on the income of its owners. Previously, Forever 21 and owners discussed the result of closing at least 100 stores. But because there is no consensus on the restructuring agreement, the number of closed stores is likely to be more.

It is reported that negotiations between Forever 21, creditors and commercial real estate owners are still advancing, and the outcome of the final discussions may change.

North America is already on holiday shopping season. Lenders are closely watching Forever 21's performance in the shopping season. Poor performance is likely to reduce lenders' support for the company.

Spokesmen for Forever 21, Simon Property Group Inc. and Brookfield Property Partners LP declined to comment on the matter.

In June, people familiar with the matter said that Forever 21 hired a restructuring consultant and is weighing the restructuring plan, hoping to increase liquidity and bring about a turning point for the declining business. We hope that we can improve the company's management by closing stores and loans, and avoid filing bankruptcy protection applications. Later, due to negotiations with potential creditors, Forever 21 began to consider matters related to the application of DIP (Debtor-In-Possession) special loans, hoping that the company would enter bankruptcy protection procedures.