Los Angeles-based apparel retailer Forever 21 has reportedly filed for Chapter 11 bankruptcy protection.
The fast-fashion retailer has obtained $350 million in financing to support it through bankruptcy and has requested approval to close up to 178 US stores.
Forever 21 is planning to exit most of its international locations in Asia and Europe, but will continue operations in Mexico and Latin America.
Since the start of 2017, more than 20 U.S. retailers, including Sears Holdings Corp and Toys ‘R’ Us, have filed for bankruptcy, according to Reuters.
So far, Forever 21’s decision to file for bankruptcy has not had any negative impact on the equities. As of writing, the futures on the S&P 500 are up 0.42%. If the equities turn red during the day ahead, the ant-risk assets like the Japanese Yen will likely pick up a bid.
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