New York City, Indianapolis and Chicago — Authentic Brands Group (ABG), a global brand development, marketing and entertainment company, has acquired America’s original fast fashion retailer, Forever 21. ABG and Simon Property Group will each own 37.5%, and Brookfield Property Partners will own 25% 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 e-commerce 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,” says 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 was established more than three decades ago in Los Angeles. 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 and maintain its e-commerce 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, the 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 toward a more sustainable supply chain.
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. For more information, visit www.authenticbrandsgroup.com.
Simon is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations. For more information, visit www.simon.com.
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. For more information, visit www.brookfield.com.
SOURCE: ABG