Deals
Forever 21 Bid Gets Approval, But Vendors Bemoan Lack of Payment
- Sale would generate $81 million, not enough to cover suppliers
- Vendors are short on cash to pay their employees, lawyer says
A Forever 21 Inc. store in New York on Aug. 29, 2019.
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
U.S. Bankruptcy Judge Kevin Gross gave Forever 21 the go-ahead on a tentative plan to sell itself to its biggest landlords -- a deal that suppliers say will leave them bearing the brunt of the losses.
The stalking-horse bid, which sets a floor for any further offers, would see Simon Property Group Inc., Brookfield Property Partners LP and Authentic Brands Group LLC pay $81 million in cash for the fast-fashion retailer and assume a chunk of its debts.