Report: Forever 21 Bids for 150 Mervyns Locations
Los Angeles Fast-fashion retailer Forever 21 Inc. submitted a bid to acquire approximately 150 Mervyns stores for an undisclosed sum, according to the Los Angeles Times.
The bid comes after Mervyns filed for Chapter 11 bankruptcy protection in July. The chain said it planned to shutter 26 of its 175 stores. Forever 21's offer is for the remaining locations, the report said.
The acquisition would help the fast-growing Forever 21 extend its brand into stand-alone retail spaces that are significantly larger than the majority of its existing 430 stores, nearly all of which are located in shopping malls. Mervyns’ stores average about 80,000 sq. ft.
"Our vision has always been to get a bigger box," said Christopher Lee, senior VP of Forever 21, according to the report. "We've been looking at these assets for many years."
The privately held Forever 21 had previously tried to buy Mervyns when it was sold by Target Corp. in 2004, Lee said, but it lost out to a group of investors that acquired Mervyns for $1.2 billion.
Forever 21 expects to get an answer of its offer within the next few weeks.