Forever 21 May Be Planning To File For Bankruptcy

Forever 21 is considering filing for bankruptcy due to difficulties in restructuring its debt. The company is seeking a debtor in possession loan to support a Chapter 11 filing, which would allow it to close unprofitable stores and revamp its business. With over 800 stores in 57 countries, the potential bankruptcy highlights the struggles of traditional retailers as consumer preferences shift towards online shopping. Similar challenges have led to bankruptcies for other retailers like Wet Seal and American Apparel.

What financial strategy is Forever 21 considering to manage its debt issues?

• Filing for Chapter 11 bankruptcy

• Launching a new product line

• Issuing new shares

• Merging with another company

How many stores does Forever 21 operate worldwide?

• Over 500

• Over 700

• Over 800

• Over 600

What is one potential advantage for Forever 21 if it files for bankruptcy?

• Reducing unprofitable locations

• Expanding into new markets

• Increasing product prices

• Hiring more employees

What trend is causing difficulties for traditional retailers like Forever 21?

• Increase in physical store visits

• Rise in local markets

• Shift to online shopping

• Decrease in fashion trends

Which of the following retailers has NOT filed for bankruptcy in recent years?

• American Apparel

• Zara

• Wet Seal

• Delia's