The new owners of the company are Authentic Brands Group, Simon Property Group, and Brookfield Property Group.
Los Angeles-based American fast-fashion brand Forever 21 has officially changed its owner. The new owners of the company became Authentic Brands Group, Simon Property Group, and Brookfield Property Group. Under the terms of the deal, ABG and Simon received 37.5% of operational business and intellectual property, while Brookfield - 25% of the company.
"Forever 21 is a powerful retail brand with an incredible consumer reach and huge untapped potential," commented ABG founder and CEO Jamie Salter. "We look forward to working with the Forever 21 team and our global partners. Together we will revitalize the core business of the brand and reach out to audiences around the world with new products and expertise.
ABG notes that the new brand strategy will focus on design, speed to market, and movement towards responsible suppliers for Forever 21. The plan will aim to attract customers of Generation Z through targeted digital companies and collaboration with influential people.
The possibility of selling the Forever 21 business became known in early February 2020. Retailer, experiencing severe financial problems, filed for bankruptcy in September 2019. It was reported that the process was a "deliberate and decisive step," which should have put the company on the path to success in the future. Last year, the company closed down about 200 retail stores around the world. As part of its new development strategy, the brand will continue to operate in the U.S., Europe, China, Southeast Asia, India, and the Middle East on its own, while in other markets it will develop according to its partnership model.