LOS ANGELES: ICR is supporting longtime client Forever 21 with corporate communications as the retailer files for bankruptcy, according to a person familiar with the matter.
Forever 21 is shuttering operations in 40 countries, including most of its locations in Asia and Europe, but will keep stores open in Mexico and Latin America, according to its Chapter 11 filing. It will close 178 stores in the U.S. and 350 worldwide.
Forever 21 said it has secured $275 million from JPMorgan Chase and an additional $75 million from TPX Sixth Street Partners so it can continue operating while making its business profitable, according to a company statement.
Kirkland & Ellis is Forever 21’s legal adviser, Alvarez & Marsal is its restructuring adviser and Lazard is its investment banker, according to a statement from the retailer.
Forever 21 posted $3.3 billion in revenue last year, down from $4.4 billion in 2016, with ecommerce making up 16% of its sales. It said a restructured company could earn $2.5 billion in annual sales, according to The New York Times. Changing customer habits and a rapid expansion from operating in seven countries to 47 in six years have been blamed for the company's change in fortunes.