March 7, 2020,
Easy it was to think that Forever 21 would be around, well, forever.
Their initial success was outstanding.
Forever 21 is known for its trendy offerings and low pricing. The company sells accessories, beauty products, home goods and clothing for women, men and children.
As shared by businessinsider.com, “The company was founded by husband-and-wife duo Jin Sook and Do Won “Don” Chang after they emigrated from South Korea to Los Angeles in 1981. The pair opened their first store, then called Fashion 21, in 1984 and pulled in $700,000 worth of sales in the first year. The retailer thrived through the early 2000s, eventually peaking in 2015 when its founders were worth a record high of $5.9 billion combined, Forbes reported.”
That by any standards is red hot retail.
Then, things cooled down.
Regarding the recent financial troubles of Forever 21, the global business news and information source forbes.com reported, “The company has been forced to seek rent reductions and bankruptcy protection in recent years but new reports claim it’s not enough and the company is on the brink of filing for bankruptcy after the continual poor trading performance.”
During their substantial growth, young teen customers have been the focus of the company but this customer segment’s shopping behaviors are changing rapidly.
Forbes adds, “Alongside becoming more focused on the sustainability of the products that they buy this group has moved past the idea that shopping is a form of entertainment reducing the leisure time they spend in stores significantly.”
At their home forever21.com they are still smiling, “FOREVER 21 is the 5th largest specialty retailer in the United States. Even with the company’s tremendous growth, it still remains a family owned business.”
They are also very inclusive in what they offer women of all sizes as they add, “Come see our latest plus size dresses for your next event or casual hangout. Browse through our midis, maxis, and LBD’s and discover your next outfit. Get dressed for every occasion and shop with Forever 21.”
Perhaps they are still smiling because there is a new buyer in town much older and financially leveraged than most of the teens they have been selling to.
This is great news for Forever 21. Please read.
Acquisition Of Forever 21 Finalized
ABG, Simon, and Brookfield Forge a Strategic Partnership to Acquire Forever 21 and Position the Brand for Sustainable Growth
NEW YORK and INDIANAPOLIS and CHICAGO, Feb. 19, 2020 /PRNewswire/ — Authentic Brands Group (ABG), a global brand development, marketing, and entertainment company, today announced the acquisition of America’s original fast fashion retailer, Forever 21. ABG and Simon Property Group (Simon) (NYSE: SPG) will each own 37.5 percent, and Brookfield Property Partners (Brookfield) (NASDAQ: BPY) will own 25 percent of the intellectual property and operating businesses.
With this move, ABG, Simon, and Brookfield become the new ownership group for Forever 21. Building on the success of Aéropostale, this similar ownership structure positions Forever 21 for long-term performance and growth. This acquisition further diversifies ABG’s experiential retail and eCommerce vertical and boosts the value of its brand portfolio to $12.5 billion in global annual retail sales.
“Forever 21 is a powerful retail brand with incredible consumer reach and a wealth of untapped potential,” said Jamie Salter, Founder, Chairman, and CEO of ABG. “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 is a global fashion retailer of women’s, men’s, and kid’s clothing, accessories, and footwear, as well as beauty. The LA-born brand, which was established more than three decades ago, is known for offering a broad selection of on-trend and fashion-forward merchandise at a compelling value. It is expected that Forever 21 stores will continue to operate across the United States and international territories. The brand’s new owners will also oversee the continued operation of its headquarters in Los Angeles, CA and maintain its robust eCommerce business.
Forever 21 is working with various landlords to continue store operations in key regions. Forever 21 will convert its current, owned store operations in Central America, South America, Mexico, the Philippines, and the Caribbean to a licensed partnership model. The new ownership group will work with existing and new partners to expand Forever 21 across key territories, including South America, Western and Eastern Europe, China, Southeast Asia, Middle East, and India.
ABG will leverage its marketing expertise and global network of partners to inject new life into the brand, with an emphasis on trend-conscious design, speed to market, and moving towards a more sustainable supply chain. The strategy will focus on engaging Gen Z audiences by introducing refreshed creative, targeted digital campaigns, and influential collaborations.
About Authentic Brands Group
Authentic Brands Group (ABG) is a brand development, marketing, and entertainment company, which owns a portfolio of global media, entertainment, and lifestyle brands. Headquartered in New York City, ABG elevates and builds the long-term value of more than 50 consumer brands and properties by partnering with best-in-class manufacturers, wholesalers, and retailers. Its brands have a global retail footprint in more than 100,000 points of sale across the luxury, specialty, department store, mid-tier, mass, and e-commerce channels, and more than 5,850 freestanding stores and shop-in-shops around the world.
ABG is committed to transforming brands by delivering compelling product, content, business, and immersive experiences. It creates and activates original marketing strategies to drive the success of its brands across all consumer touchpoints, platforms, and emerging media. ABG’s portfolio of iconic and world-renowned brands generates more than $12.5 billion in annual retail sales and includes Marilyn Monroe®, Mini Marilyn®, Elvis Presley®, Muhammad Ali®, Shaquille O’Neal®, Sports Illustrated®, Dr. J®, Greg Norman®, Neil Lane®, Thalia®, Nautica®, Aéropostale®, Forever 21®, Juicy Couture®, Vince Camuto®, Herve Leger®, Judith Leiber®, Barneys New York®, Frederick’s of Hollywood®, Nine West®, Frye®, Jones New York®, Louise et Cie®, Sole Society®, Enzo Angiolini®, CC Corso Como®, Hickey Freeman®, Hart Schaffner Marx®, Adrienne Vittadini®, Taryn Rose®, Bandolino®, Misook®, 1.STATE®, CeCe®, Chaus®, Spyder®, Tretorn®, Tapout®, Prince®, Volcom®, Airwalk®, Vision Street Wear®, Above The Rim®, Hind®, Thomasville®, Drexel®, and Henredon®.
Simon is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment, and mixed-use destinations, and an S&P 100 company (Simon Property Group,NYSE: SPG). Our properties across North America, Europe, and Asia provide community gathering places for millions of people every day and generate billions in annual sales. For more information, visit simon.com.
About Brookfield Property Partners
Brookfield Property Partners, through Brookfield Property Partners L.P. and its subsidiary Brookfield Property REIT Inc., is one of the world’s premier real estate companies, with approximately $88 billion in total assets. We own and operate iconic properties in the world’s major markets, and our global portfolio includes office, retail, multifamily, logistics, hospitality, self-storage, triple net lease, manufactured housing, and student housing.
Brookfield Property Partners is the flagship listed real estate company of Brookfield Asset Management Inc., a leading global alternative asset manager with over $540 billion in assets under management. More information is available at www.brookfield.com.
Brookfield Property Partners L.P. is listed on the Nasdaq Stock Market and the Toronto Stock Exchange. Brookfield Property REIT Inc. is listed on the Nasdaq Stock Market. Further information is available at bpy.brookfield.com.
Haley Steinberg, VP, Marketing Communications
SOURCE Authentic Brands Group
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OPENING PHOTO CREDIT FOREVER 21 via Waren Jean Co.