By Andrew Asch | Wednesday, February 19, 2020
Forever 21 is now owned by the Authentic Brands Group, the Simon Property Group and Brookfield Property Partners, it was announced on Feb. 19.
The partnership between the brand-development company and the mall-managers development companies started around Feb. 2 when they were named as the stalking-horse bidders for the bankrupt Los Angeles fast-fashion retailer.
The stalking-horse bidders agreed to acquire Forever 21 for $81 million, according to media reports. A Feb. 19 announcement from ABG did not disclose how much the partners paid for Forever 21. However, the announcement did break down how much each individual partner owns of the retailer. ABG and Simon each own 37.5 percent. Brookfield owns 25 percent of Forever 21’s intellectual property and operating business.
Jamie Salter, founder, chairman and chief executive officer of ABG, said that Forever 21 still has a lot of potential.
“Forever 21 is a powerful retail brand with incredible consumer reach and a wealth of untapped potential,” Salter said. “We’re looking forward to working with the F21 team and our global partners. Together, we’ll revitalize the brand’s core business and connect with audiences around the world through new product offerings and experiences.”
Forever 21 founders Do Won and Jin Sook Chang will not remain at the company that they started in 1984 in Los Angeles’ Highland Park section, said Haley Steinberg, an ABG spokesperson.
“The founders will not be involved with the company going forward. Our CEO has a positive relationship with them and only good things to say,” she wrote in an email.
According to ABG’s statement, the company will continue to operate its Los Angeles headquarters. The statement also said that Forever 21 will negotiate with landlords to continue store operations around the United States and other regions. It will convert owned store operations to a licensed partnership model for Forever 21 stores in Central America, South America, Mexico, the Philippines and the Caribbean. The new owners also hope to expand Forever 21 across new territories in South America, Western and Eastern Europe, China, Southeast Asia, the Middle East and India.
California Apparel News
https://www.apparelnews.net/news/2020/feb/19/forever-21-acquired-abg-simon-and-brookfield/