Forever 21 Canada's Bankruptcy Filings Reveal Transport Partners

As bankrupt fashion retailer Forever 21 announced plans to unwind its entire Canadian operation and close all 44 of its stores, court documents shed light on the impact of its transportation and logistics providers.

"We had hoped for a different outcome, but after years of poor performance and challenges set forth by the headwinds facing the retail industry today, our Canadian operations are simply no longer economically viable," Bradley Sell, chief financial officer of Forever 21 Canada said in a statement on September 29, the same day that the U.S. parent company filed for Chapter 11 protection. 

Bankruptcy documents filed in Ontario Superior Court on September 30 revealed that Forever 21 Canada plans to pay out C$1.6 million (a Canadian dollar equals US$0.76) to logistics, transportation and customs providers as its winds down its operations by the end of December.

Remco Forwarding, a subsidiary of the Montreal-based Remco, handled transportation of goods from the Port of Vancouver to Forever 21's Ontario distribution center and to all stores in Canada, according to the filings.

The documents gave no indication of the scale of Remco's business with Forever 21. Remco, which specializes in clothing transportation, did not return a request for comment from FreightWaves. 

Remco offers truckload, less-than-truckload, logistics and specialty services including garments on hangers transport. The company has a fleet of more than 120 trucks and has warehouses in Montreal, Toronto and Vancouver. 

Other affected partners include Canada Post, which handles e-commerce deliveries, and customs broker Davidson & Son. 

Forever 21 Canada requested in court filings for authorization to pay logistics and supply chain providers to help ensure an orderly unwinding of the business this year. A judge also ordered that all suppliers continue to provide services.

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