Forever 21 Inc. (Los Angeles) is in talks with Wells Fargo & Co. (San Francisco) and TPG (Sydney, Australia) about acquiring a $150 million loan, reports The Wall Street Journal.
While the retailer had predicted sales to rise 10 percent this year, it appears sales have slowed and the loan may be an attempt to offset that decline for its balance sheets.
This decline is partly due to the large size of some of its stores. With the stores being so large, the retailer has had difficulty turning over the volume of merchandise needed to stock them productively enough.
Consequently, the retailer is also looking to downsize some of these large stores including one store in Tacoma, Wash., at the Tacoma Mall. Other locations in consideration have not yet been made available.