Ol’Otis
The Picasso of the Ghetto
fashion nova came thru and crushed the building's
Bankrupt Forever 21 is closing 200 stores - CNN
New York (CNN Business)As part of its restructuring after filing for bankruptcy last month, Forever 21 will close 200 stores, leaving the fast-fashion chain with a smaller footprint to help it emerge from Chapter 11.
Burdened by expensive store leases, unprofitable markets and continuing disruption from online shopping, the teenage clothing emporium became the latest casualty in a retail industry that is reeling from store closures and bankruptcies.
Now, the company's ability to land on its feet and keep its business going while in Chapter 11 is largely at the mercy of its landlords and vendors.
The ability to get out of leases and close stores at lower cost is a key advantage that the bankruptcy process affords retailers. Forever 21 leases almost all its retail stores — it has 549 US stores and 251 in other countries, for a total of 12.2 million total square feet. Its annual occupancy cost is $450 million.
The company has significant support from its landlords with regard to lease structures — both the ones it will be renegotiating to stay in, and others that it will exit — said Jim Van Horn, a bankruptcy lawyer at Barnes & Thornburg LLP, who specializes in retail restructurings.
Bankrupt Forever 21 is closing 200 stores - CNN
New York (CNN Business)As part of its restructuring after filing for bankruptcy last month, Forever 21 will close 200 stores, leaving the fast-fashion chain with a smaller footprint to help it emerge from Chapter 11.
Burdened by expensive store leases, unprofitable markets and continuing disruption from online shopping, the teenage clothing emporium became the latest casualty in a retail industry that is reeling from store closures and bankruptcies.
Now, the company's ability to land on its feet and keep its business going while in Chapter 11 is largely at the mercy of its landlords and vendors.
The ability to get out of leases and close stores at lower cost is a key advantage that the bankruptcy process affords retailers. Forever 21 leases almost all its retail stores — it has 549 US stores and 251 in other countries, for a total of 12.2 million total square feet. Its annual occupancy cost is $450 million.
The company has significant support from its landlords with regard to lease structures — both the ones it will be renegotiating to stay in, and others that it will exit — said Jim Van Horn, a bankruptcy lawyer at Barnes & Thornburg LLP, who specializes in retail restructurings.
