(Photo: Shutterstock)Forever 21's Delaware Ch. 11 Filing Another Bankruptcy Boon for Kirkland & Ellis
The fast-fashion behemoth is the latest retailer to seek bankruptcy protection as brick-and-mortar woes keep Kirkland and other law firms busy.
September 30, 2019 at 12:18 PM
2 minute read
The original version of this story was published on The American Lawyer
After months of speculation and ramped-up news reports in recent weeks, Forever 21 finally filed for bankruptcy protection Sunday.
The retailer, a shopping-mall staple synonymous with "fast fashion" that offers affordable versions of more expensive trends, filed for Chapter 11 protection in Delaware on Sunday night, signaling the struggle of brick-and-mortar retail will likely continue as rents soar and online shopping increases competition.
Kirkland & Ellis will lead Forever 21′s restructuring efforts and manage its estimated $1 billion to $10 billion in liabilities. The company is only the latest addition to Kirkland's roster of high-profile bankruptcy clients in the retail sector: Earlier in the year the firm reaped more than $56 million in judge-approved fees for its work on Toys R Us' bankruptcy, and Kirkland is also representing luxury retailer Barneys, which filed for Chapter 11 last month.
In an interview with The New York Times, which was first to report Sunday night's filing, Forever 21′s chief restructuring officer said the retailer did not pay rent on its stores in September and plans to renegotiate lease agreements and close up to 178 stores in the U.S., while shuttering operations in 40 countries.
Senior lender JPMorgan Chase, represented in the bankruptcy by Morgan, Lewis & Bockius, has committed $275 million in financing for Forever 21, while TPG Sixth Street Partners has put up an additional $75 million in new capital.
No law firms were listed among the company's 50 largest unsecured creditors, which appeared to be mainly Chinese, South Korean or other Asian-based companies.
Pachulski Stang Ziehl & Jones will provide local counsel.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Delaware Supreme Court Upholds Court of Chancery’s Refusal to Blue Pencil an Unreasonable Covenant Not to Compete
4 minute read
Labaton’s Eric Belfi on Running Case Investigation, Analysis and Delaware Presence
Trending Stories
- 1Decision of the Day: Judge Reduces $287M Jury Verdict Against Harley-Davidson in Wrongful Death Suit
- 2Kirkland to Covington: 2024's International Chart Toppers and Award Winners
- 3Decision of the Day: Judge Denies Summary Judgment Motions in Suit by Runner Injured in Brooklyn Bridge Park
- 4KISS, Profit Motive and Foreign Currency Contracts
- 512 Days of … Web Analytics
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
