NEWSLETTER
When a retailer declares bankrupt, it causes a problem for its lessor.
In many cases, the chain will be behind in their rental without any plan to pay that money. A bankruptcy of Chapter 11 could prevent the closure of the store giving it time to carry out a business sale.
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The owner can see some money from that sale, but it could also be behind sellers, employees and some lenders on the refund list. Once a store closes, it will generally need to remodel before another tenant can move.
In addition, while all this is happening, the mall has some of its real estate tied in a dying or dead store. That is not a big problem when it is a store, but when several commercial centers retailers turn off in the same time frame. The damage can climb.
Many vacancies, even if new retailers are eager to move, can create the impression that the mall is not healthy. However, shopping centers, in general, have been quite resistant to the increase in retail agitation.
“Although the monthly comparisons of the comparisons year after year show the visits gaps, the representation of the comparison with a leap year reveals that the patterns of visits to the interior shopping centers and the outdoor shopping centers were stable in February 2025 despite the current winds of consumers,” according to data on data from the data of the data of the data of the data of the data of the data of the data of the data of the data of the data of the data of the data of the data of <a target="_blank" href="https://www.placer.ai/blog/placer-ai-mall-index-february-2025″>Pleasure.
Forever 21 creates an additional problem
After requesting bankruptcy protection from Chapter 11 for the second time in less than a year, Forever 21 decided to close their stores. The company blamed “growing costs and greater competition from abroad” for its failure.
“In relation to the presentation, we are beginning the process of closing a series of stores throughout the United States, however, however, our stores will remain open for the moment and continue to meet the orders of customers online. We will also continue to honor customer gift cards and store credit through April 15, 2025. All sales in US stores and the United States website are now definitive Its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website, on its website The website, the website, the website, the website, the website, the website, the website, the website, the website, the website, the website, the website.
The chain has stopped taking all returns or exchanges. He has also stopped offering new gift cards or credit cards, and Forever 21 credit cards will no longer be accepted since that credit card program has been discontinued.
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It is possible that some stores can survive.
“As part of our presentation, we have requested to participate in a marketing process supervised by the Court for a transaction of concern in operation or the sale of some or all our assets. Decisions about which stores will finally close are ongoing, waiting for more discussions with potential owners and buyers,” the company published
This bankruptcy presentation is applied only to Forever 21 operations in the United States. Forever 21 stores outside the United States will continue to operate normally.
Forever 21 creates an additional problem
Forever 21 has been a main tenant in many shopping centers throughout the country. It is not an anchor tenant, but occupies more space than most retailers.
That could generate problems for some of the shopping centers, but especially for the locations of the city where it will close the stores.
Related: The iconic retail chain begins the liquidation, the closing stores
“The bankruptcy of Forever 21 presents significant challenges for the owners, particularly due to the designs of the irregular stores of the retailer, which can be expensive and consume a lot of time to reuse,” said Andy Graiser, co -president of A & G Real Estate Partners.
“The growing renewal costs and prolonged vacancies add more tension, especially in main urban places such as 34th Street in New York City, where tenants face intense competition. While the owners of the shopping centers can have some flexibility, the owners of the city could face prolonged difficulties to fill these large and complex spaces,” he added.
While Forever 21 is closing, he is also working under judicial orders to try to find a buyer for some assets. That could maintain certain open stores.
“In the case of a successful sale, the company can get away from a complete breath of operations to facilitate a transaction to make us,” he shared in a press release.
