The company wrote in a letter to its customers on Sunday that Forever 21 Inc. had voluntarily applied for bankruptcy as part of a Chapter 11 filing. The company said the measure allowed it to operate business as usual while taking steps to restructure the business.
The California-based retailer stressed that the filing did not indicate plans to go out of business.
“On the contrary, filing for bankruptcy protection is a deliberate and decisive step to put us on a successful track for the future,” the company wrote.
A representative for the company told Business Insider in a statement that the company planned to close most of its locations in Asia and Europe but to continue operations in the US, Mexico, and Latin America.
“This was an important and necessary step to secure the future of our company, which will enable us to reorganize our business and reposition Forever 21,” Linda Chang, the company’s executive vice president, said in the statement.
Chang told The New York Times on Sunday night that the retailer would soon cease operations in 40 countries.
Read the full article at Business Insider.