The popular clothing store Forever 21 has filed for Chapter 11 bankruptcy. The business has continued to lose money as competition online has grown.
The company has reached an $81 million agreement with two mall operators Simon Property Group, Brookfield Properties and a management firm Authentic Brands Group, according to court documents. This sale includes Forever 21’s assets, remaining stores, and its beauty line RileyRose.
The company stated that selling to a new owner will keep Forever 21 alive and operating.
“Once approved the agreement will allow Forever 21 to come out of bankruptcy, keeping its headquarters, stores and E-commerce operations open, providing fashions and trends that customers know and love for years to come,” according to statements from Forever 21.
For now, Forever 21 is closing 111 of its stores. There is no word yet on what will happen to the other 683 stores.