Forever 21 seeks to sell itself at auction to keep brand alive

Forever 21 is running out of options.

The fast-fashion retailer has asked a bankruptcy court to approve an auction, an option that the chain hopes would keep it alive as a going business. Forever 21 filed for Chapter 11 bankruptcy protection in September, with a plan to close most of its global locations and up to 178 U.S. stores. The company had a total of 815 stores at the time of the filing.

Forever 21 said it has been engaging in “substantial, round-the-clock negotiations” with an unnamed stalking-horse bidder and asked the court to approve the sale of “substantially all” of its assets, according to Bloomberg. The chain has told suppliers in recent weeks it is short on cash and could be forced to liquidate if a buyer doesn’t emerge, according to report.

In January, Bloomberg reported that Simon Property Group — one of Forever 21’s largest landlords and unsecured creditors — and Authentic Brands Group — which recently acquired the intellectual property of Barneys New York — were considering a bid for Forever 21.