The US-based operator of Forever 21 was preparing to close at least 200 locations as part of the bankruptcy process, which is expected to kick off soon next month. Bloomberg News reported Wednesday, cite people with knowledge of the matter.
Potential bankruptcy is looking for buyers for the remaining retailers' stores. However, if eligible buyers do not appear, Forever 21 is likely to settle an entire chain of around 350 stores, the report added.
The Forever 21 trademark and intellectual property are owned by the authentic brand of apparel chain operators and are licensed to the catalyst brand, which is currently undergoing the Chapter 11 process.
Catalyst Brands is a company founded in January this year after the merger of JCPenney and SPARC Group. According to the Catalyst Brands website, it operates SPARC Group brands Aéropostale, Eddie Bauer, Lucky Brand and Nautica.
Catalyst Brands shareholders include Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein.
Bloomberg said ownership of Authentic Brands' Forever 21 brand remains intact throughout the bankruptcy process.
One of the people who spoke to Bloomberg will be licensed 21 forever to other existing retailers and distributors, regardless of the outcome of Catalyst Brands' potential sales or bankruptcy liquidation.
Forever 21, Catalyst Brands and Authentic Brands did not immediately respond to Reuters' requests for comment.
