// Forever 21 is rescued by US property companies for £62m
// Before its collapse, Forever 21 employed 32,800 people
Forever 21 has been bought out of bankruptcy for $80 million (£62 million) by two of its largest landlords.
Simon Property Group and Brookfield Property Partners, have linked up with Authentic Brands, a licensing specialist that owns Sports Illustrated magazine, to rescue the US fast-fashion retailer, The Times reported.
The new owners have agreed to assume some of Forever 21’s liabilities.
READ MORE:
The deal was first revealed earlier last week when Forever 21 said in a bankruptcy court filing that it was seeking approval to name three property companies as the lead bidders in an auction.
Meanwhile, Forever 21’s chief restructuring officer Jon Goulding told the court that the alternative was an outright liquidation of the business, according to the Financial Times.
Before it collapsed, Forever 21 employed around 32,800 people and operated almost 800 stores worldwide.
As of this week, the retailer reportedly had only $5 million (£3.8 million) of cash left — not enough to cover the $24 million (£18.5 million) it owed in rental payments for February.
In October, Forever 21 confirmed it would be closing three stores in the UK in the new year.
The store closures took place in London, Liverpool and Birmingham.
Click here to sign up to Retail Gazette’s free daily email newsletter
