Forever 21 secures 500 million dollars "to grow and expand the business"

The LA-based fashion chain has recently announced that it has obtained a line of credit of 500 million dollars. Forever 21 Inc. thus strengthens its financial position with a view to expand its business.

The new funding line - an asset-backed loan run by JPMorgan Chase & Co. - will replace a 375 million dollars credit facility, said Michael Kramer, chief financial officer of Forever 21.

The achievement of this new funding underlines the solid liquid position of Forever 21, according to Kramer.

This loan "will allow us greater flexibility in terms of investment spending to grow and expand our business," Kramer said in a statement.

"We believe this is a good time for Forever 21 to strategically leverage our strengths and current position in the market and take advantage of opportunistic growth, we are excited about our continued partnership with JPMorgan along with other banks in the consortium," said the financial lead at the American fashion chain.

At the beginning of the year, Forever 21 was reportedly looking into buying the battered American Apparel business.