Report: Forever 21 preparing to file for bankruptcy

(CNN) — Clothing retailer Forever 21 may be getting ready to file for bankruptcy.

Bloomberg News reports that the company is preparing to begin filing for Chapter 11 status.

Forever 21 has been working with consultants in an effort to restructure its debt.

The company has also been trying to get additional financing but nothing has come through.

Bankruptcy could actually help Forever 21’s bottom line because it would be able to recapitalize and get rid of stores that are not profitable, according to the news outlet.

The move could cause problems for mall owners, especially since the company has a significant mall presence.

Forever 21 was founded in 1984 and currently operates more than 800 stores around the world.

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