Forever 21 Bankruptcy Creditors Probing Sparc-JCPenney Tie-Up

A committee of unsecured creditors to Forever 21 Inc.’s US operator said they are “aggressively investigating” all deals made by the retailer before it filed for Chapter 11, including JCPenney’s acquisition of the operator’s parent Sparc Group.

The acquisition “joined and obligated” Forever 21 and certain affiliates to pay JCPenney’s existing debt, the committee alleged in a Thursday court filing. The Forever 21 operator filed bankruptcy last month with about $1.6 billion in funded debt obligations, according to court documents.

The unsecured creditors committee said it would investigate the transaction as part of a broader written objection ...