Forever 21 secures £62m deal to sell US assets

Forever 21 bankruptcy administration
In September, Forever 21 filed for Chapter 11 bankruptcy protection
// Forever 21 has secured a deal with US property companies to sell its retail business
// Simon Property Group, Brookfield Property Partners and Authentic Brands Group agreed to pay £62m for Forever 21’s US assets
// Forever 21 has around 800 stores in 57 countries

Control of collapsed fast fashion retailer Forever 21 has been handed over to a consortium of creditors led by US property companies for $81 million (£62 million).

Simon Property Group and Brookfield Property Partners along with Authentic Brands Group have agreed to pay for Forever 21’s assets in the US, which includes its beauty store brand Riley Rose and online store.

Forever 21 said in a bankruptcy court filing that it is seeking approval to name the three as the lead bidders in an auction.

READ MORE: Forever 21: What went wrong?

Rival bidders have until Friday to make any counteroffers, the filing said.

If other bids are made, an auction will be held on February 10. The retailer is planning to seek approval of the sale by February 11.

In September, Forever 21 filed for Chapter 11 bankruptcy protection – the US equivalent to a CVA.

It said it would continue trading from “the vast majority” of its stores in the US despite reports of it heading for administration.

However, the retailer revealed plans later in the month that it would axe 350 stores across the world.

Forever 21 has shuttered more than 100 locations since its bankruptcy filing. It still had more than 800 stores globally in September.

In late October, Forever 21 confirmed that it would be closing down three stores in the UK in the new year.

The store closures took place in London, Liverpool and Birmingham.

RSM Restructuring Advisory administrators Damian Webb and Allan Kelly were appointed on September 30 to oversee the process.

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