Retailer Forever 21 prepares for potential bankruptcy filing

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Founded in 1984, Forever 21 operates more than 800 stores in the United States, Europe, Asia and Latin America. The retailer has four area mall stores: at Circle Centre and Castleton Square in Indianapolis, Clay Terrace in Carmel and the Shops at Perry Crossing in Plainfield.

A bankruptcy filing would help the company shed unprofitable stores and recapitalize the business, said the people, who requested anonymity discussing private negotiations. Representatives for Forever 21 didn’t respond to a request for comment.

Co-founder Do Won Chang had been focused on maintaining a controlling stake in the company, which limited its fundraising options.

A faction of Forever 21 officials, without the approval of Chang, had asked its biggest landlords, including Indianapolis-based Simon Property Group, to consider taking a stake in the company amid a disagreement within its leadership, Bloomberg previously reported.

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