American fashion retailer Forever 21 has filed for bankruptcy, adding that it planned to “exit most international locations in Asia and Europe”, the media reported on Monday.
The California-based company made the announcement on Sunday night, the BBC reported.
Founded in 1984, Forever 21 sells cheap, trendy clothing and accessories. The fast-fashion retailer competes with other major high-street brands such as Zara and H&M.
The company said that it has obtained $275 million in financing from existing lenders and $75 million in new capital to assist with a global restructuring.
“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,” the firm’s Executive Vice President Linda Chang said in a statement.
The said that while it would cease most operations in Asia and Europe, it would continue its operations in Mexico and Latin America.
Last week, the retailer said it would pull out of Japan by October.