Report: Forever 21 seeks smaller stores, loan

Los Angeles – Forever 21, known for operating some truly large stores, is reportedly rethinking that strategy.



According to the Wall Street Journal, the specialty fast-fashion retailer is also in talks to obtain a $150 million load.



Forever 21 has had trouble with declining same-store sales in the past 12 months, and is also having difficulty making productive use of all the space in some of its larger stores, the report said. Thus, the retailer is in discussions with landlords including Simon about reducing the footprint of stores, some of which range up to almost 130,000 sq. ft.



Forever 21 operates 720 stores and plans to open 100 more stores globally this year. The retailer is discussing the possibility of a $150 million loan with Wells Fargo and TPG, with proceeds expected to support expansion in South America and possibly the buyout of leases of some unproductive large stores in Europe.