Forever 21 says bankruptcy not imminent as possible store closures loom
September 12, 2019
Patrick Collins was quoted in a Daily News article which provided more information regarding speculation of Forever 21 filing for bankruptcy.
Below is an excerpt from the article.
Forever 21 said Wednesday it would keep most of its U.S. stores open as a new report surfaced that the retailer is on the verge of filing for bankruptcy.
The company batted down the suggestion of a weekend bankruptcy filing. “The reports are inaccurate; Forever 21 is not planning to file for bankruptcy on Sunday,” company spokesperson Alecia Pulman told the Daily News in an email Wednesday.
Patrick Collins, a lawyer at the firm Farrell Fritz who focuses on bankruptcy and restructuring, said a bankruptcy filing would likely presage a significant shrinkage of the retailer’s footprint.
“Bankruptcy gives Forever 21 the power to reject leases,” Collins told the Daily News. “I think it’s very likely that there would be probably hundreds of store closures.”
To read the full article, click here.