Mediaboss Marketing

The companys advisers said at the hearing that a rapid decline in cash made a fast sale process necessary, but some creditors expressed concern about the pace.

Had the court given the other buyer even a few more days to secure financing, there may have been a true auction that could have paid some post-petition claims, a group of vendors from Hong Kong, mainland China and Korea said in an objection filed Tuesday. Vendors have suffered literally hundreds of millions of dollars of unpaid claims they said as part of a request that approval of the sale agreement be denied.

Court papers show the buyers have the right to close stores, and it wasnt immediately clear how many would remain open. The beleaguered retailer once operated about 800 stores in more than 40 countries.

Ahead of the bankruptcy, the founders insistence onmaintaining controlhad spooked potential buyers and lenders, Bloomberg has previously reported. During the court supervised reorganization, several potential buyers looked into making bids to keep all or part of the retailer going. None except the landlord group ultimately showed up, leading to the suspension of an auction scheduled Monday.

Read more from the original source:
Judge to approve Forever 21 sale that ends founders' control - Crain's New York Business