Forever 21 has reached an $81 million deal to sell its retail business.
Amid a bankruptcy court filing, Simon Property Group, Brookfield Property Partners and Authentic Brands have agreed to purchase troubled retailer Forever 21 at the discount price of $81 million.
According to CNBC, rival bidders have until Friday to make any counteroffers, the filing said. If other bids are made, an auction will be held on Feb. 10. Forever 21 is planning to seek approval of the sale by Feb. 11.
Since filing for bankruptcy, The Real Deal reports, Forever 21 has shuttered over 100 stores and negotiated $91 million in annual lease savings. It has also slashed $100 million in operational costs, court records show. However, it still has liquidity issues. On the other hand, the buyer, Authentic Brands, bought in late 2019 the rights in bankruptcy court to the Barneys New York brand name. Its retail portfolio includes Nine West and Nautica.
