Apparel retailer Forever 21 is preparing to potentially file for bankruptcy, Bloomberg reported Wednesday afternoon, citing people familiar with its plans.
The retailer has been exploring restructuring options to shore up its liquidity as it struggles with its business, CNBC previously reported. Those efforts though, have stalled, and the company’s focus has instead shifted to raising a so-called debtor-in-possession loan to fund a potential bankruptcy, Bloomberg reported. The newswire cautioned it is still possible it will be able to restructure its debt without filing for bankruptcy.. . . more