Simon, Brookfield Lead $81M Bid for Bankrupt Forever 21
An investor group that includes mall owners Simon Property Group and Brookfield Property Partners has negotiated a deal to acquire the remaining assets of retail chain Forever 21 out of bankruptcy for $81 million, according to Commercial Observer’s sister publication Observer.
The real estate powerhouses, along with Authentic Brands Group, which recently acquired licensing rights in the high-profile Barneys bankruptcy, were named as a leading bidder group in a Feb. 2 bankruptcy court filing, Observer reported. A deadline for rival bids has been set for Feb. 7, with the final deal slated for court approval on Feb. 11.
Simon and Brookfield are two of Forever 21’s biggest landlords, with the retailer’s September bankruptcy filing noting that it was on the hook for $8.1 million in unpaid rent to Simon and $5.3 million in unpaid rent to Brookfield, as CO reported.
The sale would add a new chapter to the meteoric rise and astonishing fall of Forever 21, which was started in 1984 in Los Angeles by South Korean immigrants Jin Sook Chang and Do Won Chang. The retailer said its Chapter 11 filing was driven by the rise of e-commerce and its overexpansion into international markets starting in 2008.