Forever 21 Files for Chapter 11 Bankruptcy After Weeks of Rumors

The former fast-fashion leader made the announcement late Sunday night

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Forever 21, the retailer that served as a fast-fashion pioneer has filed for Chapter 11 bankruptcy. The news was announced late Sunday night.

Because Forever 21 is filing for Chapter 11 bankruptcy, rather than Chapter 7, it will be begin the process of undergoing a cost-cutting restructuring to try to save the business, rather than a complete closure. The retailer has secured $275 million to assist in the restructuring, from JPMorgan Chase Bank, an its existing lender and an additional $75 million in new capital from TPG Sixth Street Partners.

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