Forever 21's Bankruptcy Filing: Costa Rica Operations Remain Unaffected
AR Holdings confirms ongoing operations in Costa Rica despite US bankruptcy filing under Chapter 11.
AR Holdings, the franchise operator of Forever 21 in Costa Rica, has issued an official statement regarding the recent bankruptcy and liquidation filing by the US-based brand under Chapter 11 of the United States Bankruptcy Code.
This marks the second time in six years that Forever 21 has entered this legal process.
Antonio Burgos, General Director of AR Holdings, which has managed the brand since 2013, acknowledged awareness of the information released in the United States concerning the company's operator there.
He stated, "We have been analyzing the situation and various options to determine the best scenario for continuity.
We will provide further details in due course."
Local media reported that the Forever 21 store located in City Mall, Alajuela, has closed.
However, stores in Plaza Lincoln in Moravia, Multiplaza del Este in Curridabat, and Avenida Escazú in San Rafael de Escazú remain open, as communicated by the Forever21Latam Instagram account in a post from September.
Forever 21 opened its first store in Costa Rica in 2013, generating significant anticipation among consumers who queued for hours before its launch.
On March 17, the US operation declared bankruptcy under Chapter 11, attributed to declining foot traffic in shopping malls and increasing competition from online retailers.
F21 OpCo, LLC, the operator of Forever 21 in the United States, has signed a Plan Support Agreement with its secured creditors and initiated voluntary bankruptcy proceedings in the United States Bankruptcy Court for the District of Delaware.
The company is seeking an orderly liquidation of its operations while exploring options to sell its assets either entirely or partially.
The filing indicates that the company has failed to find a buyer for its approximately 350 stores in the United States.
Importantly, the firm clarified that stores operated outside the United States under franchise agreements are excluded from the bankruptcy proceedings and will continue to operate normally.
This marks the second time in six years that Forever 21 has entered this legal process.
Antonio Burgos, General Director of AR Holdings, which has managed the brand since 2013, acknowledged awareness of the information released in the United States concerning the company's operator there.
He stated, "We have been analyzing the situation and various options to determine the best scenario for continuity.
We will provide further details in due course."
Local media reported that the Forever 21 store located in City Mall, Alajuela, has closed.
However, stores in Plaza Lincoln in Moravia, Multiplaza del Este in Curridabat, and Avenida Escazú in San Rafael de Escazú remain open, as communicated by the Forever21Latam Instagram account in a post from September.
Forever 21 opened its first store in Costa Rica in 2013, generating significant anticipation among consumers who queued for hours before its launch.
On March 17, the US operation declared bankruptcy under Chapter 11, attributed to declining foot traffic in shopping malls and increasing competition from online retailers.
F21 OpCo, LLC, the operator of Forever 21 in the United States, has signed a Plan Support Agreement with its secured creditors and initiated voluntary bankruptcy proceedings in the United States Bankruptcy Court for the District of Delaware.
The company is seeking an orderly liquidation of its operations while exploring options to sell its assets either entirely or partially.
The filing indicates that the company has failed to find a buyer for its approximately 350 stores in the United States.
Importantly, the firm clarified that stores operated outside the United States under franchise agreements are excluded from the bankruptcy proceedings and will continue to operate normally.
