BPR Brookfield Property REIT Inc

By Soma Biswas 

Forever 21 Inc. is moving forward with a sale to a group of buyers that includes Simon Property Group Inc. after no rival bidders qualified to challenge the offer, according to court filings.

A group made up of Forever 21's biggest landlords -- Simon and Brookfield Property Partners LP -- along with Authentic Brands Group LLC, a brand licensing firm, has offered $81 million for the bankrupt fast-fashion retailer.

Forever 21 said Sunday it was scrapping a planned auction for Monday after it didn't receive any other qualified offers

The landlord takeover is similar to Simon Property's acquisition of mall-based retailer Aéropostale Inc. in 2016. In that sale, the real-estate investment trust teamed with Authentic Brands and General Growth Properties on the deal.

Meanwhile, Simon Property will become an even bigger owner of malls, and a bigger landlord to Forever 21, following its deal to buy Taubman Centers Inc. for $3.21 billion. Taubman is a landlord to 21 Forever 21 stores, court filings show.

Judge Kevin Gross will consider approval of the sale Tuesday at a hearing scheduled for U.S. Bankruptcy Court in Wilmington, Del.

The sale of Forever 21 means the end of the Chang family's control of the retailer. The family founded the chain in 1984.

The fast-fashion retailer filed for bankruptcy in September. While other chains were shrinking store sizes and closing locations, Forever 21 pushed into spaces that in some cases were double or triple the size of previous locations. To help fill them, Forever 21 pushed into categories such as menswear, footwear, lingerie and plus sizes.

A spokeswoman for the company had no immediate comment.

Write to Soma Biswas at soma.biswas@wsj.com

(END) Dow Jones Newswires

February 10, 2020 15:05 ET (20:05 GMT)

Brookfield Property REIT (NASDAQ:BPR)
Historical Stock Chart
From May 2024 to Jun 2024

Brookfield Property REIT (NASDAQ:BPR)
Historical Stock Chart
From Jun 2023 to Jun 2024