Forever 21 Creditors Face Large Losses Under Bankruptcy Plan

Suppliers, vendors and other unsecured creditors of Forever 21 are “getting smoked” under a restructuring plan that envisions paltry recoveries on debts owed by the bankrupt fast fashion retailer, a lawyer for the company’s unsecured creditors said on Tuesday.

At a virtual hearing before a Delaware-based US bankruptcy judge, attorney Justin Alberto, who represents a committee of creditors including US and China-based manufacturers and suppliers, added that his committee is continuing to…