Forever 21 has been acquired by a business consortium lead by Authentic Brands Group, rescuing the bankrupt fast fashion retailer from permanent closure.
SEE ALSO : Forever 21 filing for bankruptcy
New York brand development firm ABG said it was successful in acquiring Forever 21, in partnership with Simon Property Group and Brookfield Property Partners – a duo of mall-managers development companies.
As part of the deal, both ABG and Simon will become majority shareholders, each with a 37.5% stake in Forever 21 and its intellectual property and operating businesses.
Brookfield has a vested interest in the remaining 25%. The companies failed to disclose how much each paid for their stake.
The acquisition is an update on the $81 million stalking horse bid made by the investor trio for the Los Angeles-based retailer on 2nd February. On the news of the purchase, ABG’s CEO Jamie Salter, described Forever 21 as “a powerful retail brand with incredible consumer reach and a wealth of untapped potential.”
“We are looking forward to working with the F21 team and our global partners. Together, we will revitalize the brand’s core business and connect with audiences around the world through new product offerings and experiences,” said Salter.
However, Forever 21 founders, Do Won and Jin Sook Chang, will not remain at the company, said Haley Steinberg, an ABG spokesperson, according to media reports.
“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,” Steinberg added.
According to ABG, the company, which was founded in 1984 in Highland Park section, will continue to operate its Los Angeles headquarters.
The statement said that Forever 21 would negotiate rental agreements to forego U.S store closures, which includes 448 stores.
ABG plans to also convert owned store operations to a licensed partnership model for Forever 21 stores in Central America, South America, Mexico, the Philippines and the
SEE ALSO : Permira acquires Golden Goose
Finally, the new owners want to expand Forever 21 across new territories in South America, Western and Eastern Europe, China, Southeast Asia, the Middle East and India.