Former fashion pioneer, Forever 21 offered meagre $81 million bid

A group including two of Forever 21 Inc.’s biggest landlords, Simon, Brookfield, Authentic, has offered to buy the bankrupt retailer for $81 million, a fraction of what the international fashion pioneer was once worth.

A group including two of Forever 21 Inc.’s biggest landlords has offered to buy the bankrupt retailer for $81 million, a fraction of what the international fashion pioneer was once worth. The consortium of Simon Property Group Inc., Brookfield Property Partners LP and Authentic Brands Group LLC is seeking to buy substantially all of the company’s assets, according to documents filed Sunday in federal bankruptcy court. The so-called stalking horse agreement sets a minimum price for a proposed auction later this month. If no other bidders step forward, the consortium would be declared the winner.

Plans envision an auction process with a sale hearing requested for Feb. 4 and approval of the winner no later than Feb. 11. The buyers have the right to close and wind down certain stores and conduct going-out-of-business sales, according to the new filing. They’re also entitled to a $4.65 million break-up fee under some circumstances if the sale isn’t completed. Forever 21 had been in “substantial, round-the-clock negotiations” about the bid, the Los Angeles-based company said previously in documents filed last week.

Bloomberg previously reported that Authentic Brands Group and Simon Property Group were mulling a plan to acquire the retail chain. Forever 21 was talking about selling a stake to Simon and its other largest landlord, Brookfield Property Partners LP, before it filed for bankruptcy in September, Bloomberg previously reported. Negotiations broke down and the company had to seek court protection without a reorganization plan in place.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)

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