Mega mall owners mull investing in Forever 21 after bankruptcy
Two mall titans may invest in the bankrupt teen retailer Forever 21.
The retailer filed for bankruptcy protection on Sunday morning and recently tried to cut a deal in which its two largest landlords, Brookfield Property and Simon Property, would take an ownership stake, according to the New York Post.
The reason, is Forever 21 uses a lot of mall space with its 541 stores. The nationwide closure of 178 locations would leave big holes at shopping malls.
Negotiations between the retailer, Brookfield, and Simon are considered dead for now as they reached an impasse over the weekend.
Reps for Simon, Brookfield and Forever 21 didn’t respond to requests for comment by The Post.
Forever 21 is planning to close 350 of its 800 stores worldwide, including most of its operations in Asia and Europe, according to court documents.
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Three years ago, Simon and mall operators GGP, which is now owned by Simon, rescued teen chain Aeropostale out of bankruptcy rather than face 740 stores going dark.