Forever 21 has hired restructuring advisers to help negotiate store leases and overhaul the business, people familiar with the matter told The Wall Street Journal. The sources say that Forever 21 has retained Latham & Watkins LLP to handle negotiations with landlords, and Alvarez & Marsal to improve its operations.
The chain’s troubles reflect challenges that have been plaguing multiple specialty mall-based retailers, including the resignation of Francesca’s CEO Steve Lawrence and Charlotte Russe filing for bankruptcy. A number of teen apparel chains have filed for bankruptcy in recent years, including Styles For Less, Aéropostale, Rue21 and American Apparel, before emerging with a leaner footprint and less debt.
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