The US-based apparel company Forever 21 which was founded in 1984, filed for bankruptcy. The fashion brand, which has stores in Bulgaria, however, does not intend to completely withdraw from the market, but rather to use this move as a way to clear its business from non-working assets, in particular, from non-profit shops. The sites that survive this type of restructuring will continue to operate, the company said in a statement.

"the decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with 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 U.S.," the company said.

"This does not mean going out of business, on the contrary, filing for bankruptcy is a deliberate and decisive step that will allow us to successfully move forward," the company said in a statement quoted by Bloomberg.

It is reported that the company will close 178 out of its 815 stores.

According to the agency, the brand's creditors, JPMorgan Chase Bank and TPG Sixth Street Partners paid the fashion company $ 275 million and $ 75 million, respectively, to restore the brand's work and fulfil obligations to customers, suppliers and employees.