Forever 21 Finds A Buyer: Can An $81 Million Deal Save The Retailer?

After filing for Chapter 11 bankruptcy in September 2019, teen apparel retailer Forever 21 is reportedly looking to sell its business to Simon Property Group (SPG), Brookfield Property Partners (BPY), and Authentic Brands in an $81 million deal.

Forever 21 is looking for approval from the bankruptcy court to move forward with the transaction, listing the three companies as the stalk-horse bidder, according to court documents. Forever 21 is taking counter bids until Friday when an auction will be held for the retailer’s assets.

Forever 21 has closed more than 100 stores since filing for bankruptcy, listing that it had more than 800 stores globally at the time of its filing.

Simon Property Group, which is owned by Brookfield Property Partners, is a mall owner and the largest landlord of Forever 21, which has 100 stores in malls owned by the firm, CNBC reported. The fear for Simon Property Group, as well as other mall owners, has been that Forever 21 will leave a number of vacant locations inside its malls, along with other retailers that have closed their doors as of recently, the news outlet said.

Authentic Brands is the owner of Barneys New York, which it bought the rights to in 2019, as well as brands like Nine West and Nautica.

Shares of Simon Property Group were up 1.59% as of 10:22 a.m. EST on Monday while shares of Brookfield Property Partners were up 1.03% at the same time.