After Last Year'S Bankruptcy, Forever 21 Sold To Real Estate Developers For 80 Million Dollars.

Forever 21 has made new progress in bankruptcy acquisition. According to Reuters, the Delaware court of bankruptcy has agreed to a consortium of Simon real estate group, brand management company Authentic Brands Group and Brookfield Real Estate Company to acquire fast fashion Forever 21 for $81 million 100 thousand.

It is reported that this is the only price quoted by the court, and the brand announced the cancellation of its bid on Monday because it failed to receive any qualified offer.

Forever 21 now accumulates a total of $120 million in debt, which needs to be repaid after bankruptcy. Last year, Forever 21 filed for bankruptcy because of the high rent, the drag on its international sector and the change in consumer tastes.

Forever 21, the founder of the Korean immigrants, built an international empire in Losangeles's chain store, but failed to keep up with the tastes of consumers.

Kirkland&Ellis LLP lawyer Aparna Yenamandra, who represents Forever 21, said the new owner has agreed to pay $81 million in cash and take on certain debts, including $53 million that has not yet been paid.

Court documents show that buyers have the right to close stores. It is not clear how many stores will continue to operate. Forever 21, which has been in trouble, has operated about 800 stores in more than 40 countries / regions.

Simon real estate group (New York stock exchange code: SPG) is one of the largest shopping center landlords in the world. Therefore, it is fully aware that the "retail Apocalypse" is threatening the real estate investment trusts (REIT) and causing retailers to close stores or, worse, to close completely. That is to say, the financial strength of Simon (Simon) is at the best position of creativity in dealing with the troubled lessee.