Forever 21 has reached an $81-million deal to sell its retail business to a group that includes Simon Property Group, Brookfield Property Partners and Authentic Brands. The company is seeking approval to name the three as the lead, stalking-horse bidders in an auction, it said in a bankruptcy court filing. Rival bidders can make counteroffers till February 7.
An auction will be held on February 10 if other bids are made. The US fast fashion retailer is planning to seek approval of the sale by February 11.Forever 21 has reached an $81-million deal to sell its retail business to a group that includes Simon Property Group, Brookfield Property Partners and Authentic Brands.The company is seeking approval to name the three as the lead, stalking-horse bidders in an auction, it said in a bankruptcy court filing. Rival bidders can make counteroffers till February 7.#
Forever 21 filed for Chapter 11 bankruptcy protection in September. The mall-based apparel chain, faced trouble by expanding too quickly within the United States and abroad. It has closed more than 100 outlets since its bankruptcy filing. It still had more than 800 stores globally in September, according to US media reports.
Simon and Brookfield are two of Forever 21's biggest landlords. Simon's malls have nearly 100 Forever 21 stores. Authentic Brands in late 2019 bought the rights in bankruptcy court to the Barneys New York brand name. Its retail portfolio includes Nine West and Nautica.
Fibre2Fashion News Desk (DS)
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