Authentic Brands Group, Simon Property Group and Brookfield Property Group have finally completed their acquisition of ailing fashion chain Forever 21.
Authentic Brands and Simon will take care of 37.5 % of the retailer's intellectual property and operational activities, the remaining quarter going into the hands of Brookfield. Their first assignment is to get the slowed-down sales running again: to achieve this, they will focus on trendy designs and a more sustainable supply chain. The introduction of digital campaigns should allow the new owners to specifically target Generation Z.
"Forever 21 is a powerful retail brand with incredible consumer reach and a wealth of untapped potential", Authentic Brands CEO Jamie 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."
End of the crisis?
Last September, Forever 21 asked protection against creditors in a Chapter 11 procedure. This allows the retailer to continue its operations, while working on a plan to reduce debts - including by selling or closing unprofitable stores. FashionUnited has calculated that the chain already has closed some 200 international stores.
ABG says Forever 21 is trying to find agreements with several landlords to continue its activities in the most important regions. Stores in Middle and South America will be changed into a licencing model. The new group will also work with current and new partners to expand Forever 21's activities. The group's headquarters will remain in Los Angeles.