Retailer Forever 21 prepares for potential bankruptcy filing

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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