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Forever 21 files for Chapter 11 Bankruptcy Protection

US fashion retailer Forever 21 filed for Chapter 11 bankruptcy protection, adding another big fashion merchant to the tally of retailers who couldn’t cope with high rents and heavy competition, BBC reported.

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Forever 21 files for Chapter 11 Bankruptcy Protection

[vc_row][vc_column][vc_column_text]US fashion retailer Forever 21 filed for Chapter 11 bankruptcy protection, adding another big fashion merchant to the tally of retailers who couldn’t cope with high rents and heavy competition, BBC reported. 

The Chapter 11 filing allows the Los Angeles-based company to keep operating while it works out a plan to pay its creditors and turn around the business.

Forever 21 has obtained $275 million in financing from lenders with JPMorgan, Chase & Co. as agent, as well as $75 million in new capital from TPG Sixth Street Partners and its affiliated funds.

“The financing provided by JPMorgan and TPG Sixth Street Partners will arm Forever 21 with the capital necessary to effect critical changes in the U.S. and abroad to revitalize our brand and fuel our growth, allowing us to meet our ongoing obligations to customers, vendors and employees,” Linda Chang, executive vice president of Forever 21, said in a statement.

“What we’re hoping to do with this process is just to simplify things so we can get back to doing what we do best,” Chang told The New York Times. 

A bankruptcy filing could help Forever 21 get rid of unprofitable stores and raise fresh funds. This could be problematic for major US mall owners, including Simon Property Group Inc. and Brookfield Property Partners LP, because Forever 21 is one of the biggest mall tenants still standing after a wave of bankruptcies. The busts emptied more than 12,000 stores in the past two years, and those vacancies may be hard to fill.

The retailer is the seventh-largest tenant of mall-owner, Simon Property Group, by rent.

Forever 21 plans to exit most of its international locations in Asia and Europe, but will continue operations in Mexico and Latin America. It does not expect to exit any major markets in the US, the retailer said in a release.

“This was an important and necessary step to secure the future of our company, which will enable us to reorganize our business and reposition Forever 21,” the firm’s Executive Vice President Linda Chang said in a statement.

A spokesperson for the company said the decision to withdraw from the country followed “continued sluggish sales” and its struggle against rising competition from online rivals.

Founded in 1984, Forever 21 operates more than 800 stores in the US, Europe, Asia and Latin America. It specializes in fast-fashion apparel — trendy, cheap, quickly-made knockoffs of original designs that often is worn only a few times before being given away or tossed out. Competitors include Zara, H&M and Amazon.com.

Kirkland & Ellis LLP is the company’s legal adviser, and Alvarez & Marsal is the restructuring adviser, and the investment banker is Lazard.[/vc_column_text][/vc_column][/vc_row]

India News

PM Modi proposes to host COP33 in India in 2028

The 28th conference of the Parties (COP) to the United Nations framework Convention on climate change (UNFCCC), refered as COP28, is currently taking place in Dubai in the United Arab Emirates, from November 30 to December 12.

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Prime Minister Modi was addressing the COP28 climate summit in Dubai on Friday, he proposed hosting COP33 in India in 2028. PM Modi said  India is committed to UN framework for climate change process. That is why, from this stage, he proposed to host COP33 Summit in India in 2028.

The 28th conference of the Parties (COP) to the United Nations framework Convention on climate change (UNFCCC), refered as COP28, is currently taking place in Dubai in the United Arab Emirates, from November 30 to December 12.

As a special gesture by the UAE, PM Narendra Modi was given the honour of speaking at the Ceremonial opening of the summit, in which discussion will held on issues regarding climate change in the coming days. He said he announced one more pro planet, pro active and positive initiative- green credit initiative.

PM Modi said India’s goal is to bring down the emissions intensity by 45 % till 2030 and also said the country has decided to increase the share of non fossil fuel to 50%. He said India will keep going ahead towards the goal of net zero by 2070.

PM Modi will also attend three other high level events on the sidelines of the summit. Bilateral meetings with World Leaders like Maldivian President Mohamed Muizzu, UN Secretary-General Antonio Guterres and Israeli President Issac Herzog.

The COP28 conference brings together the heads of the state, climate activists, government ministers, scientists and other stake holders from all over the world so that discussion can take place and action can be taken on climate change. The key themes of the conference include slashing energy emissions before 2030 and fast tracking the energy transition, transforming climate finance, putting nature, lives, people and livelihood at the heart of climate action and mobilizing for more inclusive COP ever.

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US looks forward to seeing results, says Antony Blinken as India probes Pannu murder plot

White House spokesperson John Kirby earlier echoed Blinken’s remarks, but cushioned the statement by stressing the importance of the bilateral relationship between the two countries.

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Antony Blinken, US Secretary of State on Thursday said that Washington takes very seriously the allegations that an Indian government official was involved in a foiled plot to murder Khalistani terrorist Gurpatwant Singh Pannun on American soil. Speaking to the media at Tel Aviv, the US top diplomat said that he couldn’t comment in detail on the matter as it was under judicial consideration, but welcomed the investigation launched by India into the alleged plot to kill Pannu.

He added that a number of them have raised this directly with the Indian government in past weeks. He mentioned that the Indian government announced that it was conducting an investigation, adding that it is good and appropriate, and that they look forward to seeing the results.

White House spokesperson John Kirby earlier echoed Blinken’s remarks, but cushioned the statement by stressing the importance of the bilateral relationship between the two countries. Addressing a press conference, he said that India remains a strategic partner, and they are going to continue to work to improve and strengthen that strategic partnership with India. He noted that at the same time, they take the aforesaid allegations and investigation very seriously.

John Kirby was responding to a question about the US Justice Department’s indictment of Indian citizen Nikhil Gupta, which accused him of working with an Indian government agency employee to hire a hitman to kill Gurpatwant Singh Pannun, a US citizen and founder of the Khalistani outfit, Sikhs for Justice.

Kirby further acknowledged India’s responsiveness to the matter, stating that they are glad to see that India is also taking it seriously by announcing their own efforts to investigate this. He added that the US has been clear that they want to see anybody that’s responsible for these alleged crimes to be held properly accountable.

Meanwhile, India has already constituted an investigation team to probe the allegations relating to the foiled plot to kill Pannun. The Ministry of External Affairs spokesperson Arindam Bagchi on Thursday described it as a matter of concern and also contrary to government policy the US linking an Indian official to the man charged with the alleged conspiracy.

As per reports, Nikhil Gupta, 52, has been charged with two counts of murder-for-hire and conspiracy to commit murder-for-hire for allegedly participating in the Pannun murder plot. He can be sentenced to a maximum sentence of 20 years in prison, if convicted.

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Afghanistan shuts its embassy in Delhi, says persistent challenges from Indian government

The statement claimed that efforts have been made to tarnish their image and hinder diplomatic efforts in order to justify the presence and work of Taliban-appointed and affiliated diplomats.

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The Afghanistan embassy on Thursday has announced its permanent closure in New Delhi. Issuing an official statement, the Afghan embassy noted that effective from November 23, 2023 due to persistent challenges from the Indian government they have decided the closure of its diplomatic mission in New Delhi. 

The statement further mentioned that the decision follows the embassy’s earlier cessation of operations on September 30, a move made in the hope that the Indian government stance will favourably change to let the mission operate normally. In addition, the embassy said it was cognisant that some may attempt to characterise this move as an internal conflict, allegedly involving diplomats who switched allegiance to the Taliban, adding that this decision is a result of broader changes in policy and interests.

The statement further stated that the embassy extends its sincere gratitude to the Afghan citizens in India for their understanding and support throughout their mission’s tenure. The Afghan embassy further mentioned that despite limitations in resources and power it has worked tirelessly for their betterment and in the absence of a legitimate government in Kabul.

In the statement, the Afghan embassy noted that over the past two years and three months, the Afghan community in India has witnessed a significant decline, with Afghan refugees, students, and traders leaving the country, adding that the number has nearly halved since August 2021, with very limited new visas being issued during this period.

It added that they assure the Afghan community that the mission operated with transparency, accountability, and a commitment to fair treatment based on the goodwill and interests of Afghanistan considering historic ties and bilateral relations with India.

The statement claimed that efforts have been made to tarnish their image and hinder diplomatic efforts in order to justify the presence and work of Taliban-appointed and affiliated diplomats. In the face of these challenges, our committed team worked diligently in the most difficult circumstances, prioritizing the interests of the 40 million Afghans in every possible sphere from securing humanitarian aid and online education scholarships to facilitating ease in trade and advocating for the formation of a broad-based government, the Afghan embassy added.

As per reports, the Afghan embassy announced the closure of its operations on November 1, citing lack of resources and failure to meet Afghanistan’s interests by the Taliban regime.

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