// Forever 21 to continue trading in US despite reports that it has run out of cash
// Forever 21’s top senior lender JP Morgan Chase has agreed to switch its loan into a bankruptcy refinancing package
// Forever 21 currently operates from 700 stores in the US and 3 in the UK
Forever 21 has said it will continue trading from “the vast majority” of its stores in the US despite reports of it heading for administration.
The fast fashion retailer is preparing to file for bankruptcy as it continues to struggle.
Forever 21’s top senior lender JP Morgan Chase agreed to switch its loan into a bankruptcy refinancing package, which could take place this weekend, Wall Street Journal reported.
Forever 21 currently operates from 700 stores in the US and is reportedly running out of cash.
It is seeking a debtor-in-possession loan to take the company into Chapter 11 bankruptcy, according to Bloomberg.
The retailer is also renegotiating leases on more favourable rent terms with its landlords.
However, Forever 21 has denied the reports.
“Forever 21 is not planning to file for bankruptcy on Sunday,” a spokeswoman said.
“Our stores are open and it is our intention to continue to operate the vast majority of US stores, as well as a smaller amount of international stores.”
Forever 21 recently reduced its store count in the UK to just three, including a flagship on London’s Oxford Street.
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