Report: Forever 21 at risk of filing for bankruptcy

Bloomberg is reporting the company is in real trouble.
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Fashion retail chain Forever 21 is reportedly on the road to bankruptcy.

The company has not yet commented on the report by Bloomberg on Thursday, which states turnaround options for the chain are fading and a potential bankruptcy filing could be on the cards.

There is the potential of a reprieve however, with the retailer said to be in talks about extra financing to restructure its debt, but negotiations have reportedly "stalled."

In the event is does file for bankruptcy, the retailer would likely to offload some of its poorer-performing stores, Bloomberg notes, which in turn could have an impact upon its remaining stores in Minnesota.

Forever 21 still has four outlets in the state: At the Mall of America, Rosedale Center, The Shoppes at Arbor Lakes in Maple Grove, and at the Apache Mall in Rochester.

It did have a presence at the Crossroads Center in St. Cloud as recently as this summer, but the St. Cloud Times reported it closed at the end of July.

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Forever 21 is a former retail success story and expanded aggressively across the U.S. with its trademark "fast-fashion" offering.

But Forbes notes that the retailer has lost customers to competitors like Zara and H&M, as well as online-only retailers like Asos and Fashion Nova.

Bloomberg also notes it's struggled with the shift in tastes from the younger generations away from "fast-fashion" towards higher-quality, more sustainably produced clothing.

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