Clothing retailer Forever 21 is fighting for its survival.
The chain founded in the 1980s by Do Won and Jin Sook Chang after immigrating to California from South Korea filed for bankruptcy protection Sunday, reported the New York Times.
The chain is expected to close as many as 178 stores in the United States and shut down in Canada, Japan and 38 other countries.
“My parents built an amazing brand,” said Linda Chang, the chain’s executive vice president. “When you think of fast fashion, there’s really only a handful of names that come top of mind for most people, and to be in that top list is a pretty amazing feat.”
CNN reports no decision has been made on which stores will close.
The chain sent a letter to many of its frequent customers stating a lot depends on future negotiations with its landlords.
“We do however expect a significant number of these stores will remain open and operate as usual, and we do not expect to exit any major markets in the US,” the company said.
Forever 21 said it has received $275 million from JPMorgan Chase (JPM), and an additional $75 million in new capital from TPG Sixth Street Partners.
The chain is hopeful this will allow it to operate “in a business as usual manner.”