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Forever 21 at an Impasse on Landlord Deal Ahead of Bankruptcy

  • Restructuring plan hit snags over future ownership stakes
  • Apparel chain aimed to strike deal before Chapter 11 filing
Inside Fair Oaks Mall Ahead Of Retail Sales Figures

Photographer: Andrew Harrer/Bloomberg

Struggling teen retailer Forever 21 Inc. has reached an impasse in talks over a restructuring deal that would give its two largest landlords a stake in the company, according to people with knowledge of the situation.

The breakdown in negotiations with Simon Property Group Inc. and Brookfield Property Partners LP means the retailer is without a reorganization plan as it prepares for a bankruptcy filing, said the people, asking not to be identified discussing private negotiations. Going to court without a plan could delay and complicate the company’s turnaround efforts.