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Forever 21’s PHL ops unaffected by bankruptcy filing in US —SM Retail


The Philippine operations of fashion retail giant Forever 21 remains unscathed by its American parent’s bankruptcy filing in the US, according to local partner SM Retail Inc.

“There is no effect on our Philippine operations,” SM Retail president and CEO Ponciano Manalo Jr. told GMA News Online in a text message.

“We continue full operations of all 15 stores of Forever 21 in the Philippines,” Manalo said.

On Sunday, Forever 21 announced it has filed for Chapter 11 bankruptcy protection to restructure its business. 

The company said it plans to exit most of its international locations in Asia and Europe, but will continue operations in Mexico and Latin America.

In the Philippines, however, Manalo said “Forever 21 Philippines continues to be one of the stronger global operations.”

The American fashion retailer entered the country in 2010 through a joint venture with SM Retail, with a first branch in SM Megamall.

The Forever 21 brand has spread in other SM malls such as in SM Mall of Asia, SM North EDSA, and SM Makati.

“We will continue to offer up to date merchandise and are gearing up our marketing investments for the coming Christmas season,” Manalo said.

Forever 21 has said it received $275 million in financing from existing lenders with JPMorgan Chase Bank N.A. as agent, and $75 million in new capital from TPG Sixth Street Partners, and certain of its affiliated funds.

The company listed both assets and liabilities in the range of $1 billion to $10 billion, according to the court filing in the US Bankruptcy Court for the District of Delaware.

“Forever 21 USA continues to operate under the US Chapter 11 guidelines,” Manalo said.

“Their operations will continue and their bankruptcy filing allows them to reorganize in a manner that will improve overall sales and operations,” he added.

Since the start of 2017, more than 20 US retailers, including Sears Holdings Corp. and Toys ‘R’ Us, have filed for bankruptcy, succumbing to the onslaught of fierce e-commerce competition from Amazon Inc., according to a report by Reuters. —KG/VDS, GMA News

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