Bankrupt Forever 21 Gets $81 Million Bid

Struggling and bankrupt clothing retailer Forever 21, has received a huge bid this past weekend.

A group that includes two of the company’s biggest landlords has made an offer or $81 million to buy the retailer. This is a mere fraction of what Forever 21 was worth at one point.

The consortium of Simon Property Group Inc., Brookfield Property Partners LP and Authentic Brands Group LLC wants to substantially purchase all of the company’s assets, according to documents filed in federal bankruptcy court this past Sunday.

If no other bidders step forward, the consortium would be declared the winner.

The agreement calls for a court hearing on the deal no later than Feb. 13th and court approval by Feb. 18th, according to the documents.

The would-be buyers have the right to close and wind down certain stores and conduct going-out-of-business sales, reads the filing. They’re also entitled to a $4.65 million break-up fee under some circumstances if the sale isn’t completed.

Bloomberg had reported that Authentic Brands and Simon Property were planning to acquire the retail chain.

The case is Forever 21 Inc., 19-12122, District of Delaware (Delaware).