That's the word from Bloomberg, who said Wednesday that sources "with knowledge" of Forever 21 Inc.'s plans have revealed that the affordable fashion company is now centering its goals on getting a debtor-in-possession loan as part of a move into Chapter 11 proceedings.
Filing for bankruptcy, the report adds, could assist the company in the dropping of store locations that aren't profitable, though it could also spell trouble for major mall owners. In a separate report, an industry analyst told Forbes that 2018 sales showed a fall of as much as 25 percent.
The news also adds another chapter to the ongoing saga of once-traditional retail outlets showing potential struggle as industries across multiple mediums face further reinvention in the modern age. By 2026, per UBS predictions from this past April, as many as 75,000 retail stores will be forced to close up shop. Payless ShoeSource, Gymboree, Dressbarn, and Gap are among the brands to have initiated the closings of hundreds of locations this year alone.
In July, it was reported that Barneys had filed for bankruptcy protection from creditors.