Paul Weiss And Young Conaway Guide Forever 21 In Bankruptcy Filing

Paul Weiss And Young Conaway Guide Forever 21 In Bankruptcy Filing

The company's stores in the U.S. and website will remain open and continue serving the customers

F21 OpCo LLC, which operates brand Forever 21 stores in the US, has voluntarily filed for Chapter 11 bankruptcy in the Bankruptcy Court for the District of Delaware.

The company's stores in the U.S. and website will remain open and continue serving the customers.

The bankruptcy filing will also not affect its international locations, which operate independently. It stated that the company and its certain subsidiaries entered a Plan Support Agreement with secured lenders.

The company will implement an orderly wind-down of its U.S. business while continuing the marketing process to solicit interest in a going concern transaction or a sale of its assets.

While undergoing liquidation and court-supervised sale and marketing process, it will file a motion with the court seeking authority to market its assets through an auction pursuant to Section 363 of the Bankruptcy Code.

If the sale materializes, the company may pivot away from a full wind-down of operations to facilitate a going-concern transaction. It hopes that the dual-path process will maximize optionality and value.

Outside the U.S., Forever 21's locations are operated by other licensees and not included in the cChapter 11 filings.

Meanwhile, Authentic Brands Group continues to own the intellectual property associated with Forever 21 and may license the brand to other operators. Its non-US locations and international e-commerce sites will operate as usual.

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Young Conaway Stargatt & Taylor LLP are the company's legal counsels.

BRG is serving as its financial advisor, and RCS Real Estate Advisors as its real estate guide. While SSG Capital Advisors is the investment banker, Reevemark is the communications advisor.