Ever wonder who’s behind those trendy clothes at Forever 21? The fast-fashion retailer that once dominated malls has changed hands in recent years.
Forever 21 is currently owned by Authentic Brands Group and Simon Property Group through their retail venture SPARC Group. This ownership change happened after the company filed for bankruptcy in 2019.
The once-independent family business has transformed significantly since its humble beginnings as Fashion 21 in Los Angeles in 1984.
In early 2025, JCPenney and SPARC Group announced a merger to create a new entity called Catalyst Brands. This business move brings together several retail brands that have faced financial challenges in recent years.
Key Takeaways
- Forever 21 is owned by Authentic Brands Group and Simon Property Group following its 2019 bankruptcy.
- The fast-fashion retailer recently became part of Catalyst Brands through a 2025 merger between SPARC Group and JCPenney.
- Forever 21 started as a single store called Fashion 21 in Los Angeles before growing into a global fashion retailer.
History of Forever 21
Forever 21’s journey spans from a single small store to global retail prominence, followed by financial struggles and eventual acquisition by new ownership.
Founding and Early Growth
Forever 21 began as a humble store called Fashion 21 in Highland Park, Los Angeles in 1984. The founders were Korean immigrants Do Won Chang and his wife Jin Sook Chang, who had recently moved to America seeking better opportunities.
Do Won (also known as Don) initially worked three jobs to make ends meet, including as a gas station attendant. The couple pooled their savings to open their first 900-square-foot store.
Their first day in business brought in $700, and within the first year, sales reached an impressive $700,000. This success encouraged them to open new locations, changing the name to Forever 21 to emphasize youthful fashion.
The company’s early growth was fueled by the Changs’ keen understanding of fast fashion and their ability to quickly bring trending styles to market at affordable prices.
Expansion and Brand Development
Throughout the 1990s and 2000s, Forever 21 expanded rapidly across America. The retailer became known for offering trendy clothing at extremely competitive prices, making fashion accessible to younger shoppers with limited budgets.
By the mid-2000s, Forever 21 had transformed from a small chain to a major fast fashion retailer with hundreds of locations. The brand expanded internationally, opening stores in major markets around the world.
The company also diversified its merchandise, launching several sub-brands including:
- XXI Forever (larger flagship stores)
- Love 21 (contemporary women’s line)
- 21Men (men’s clothing)
- Forever 21+ (plus-sized fashion)
The Chang family, including daughters Linda and Esther, took active roles in the company’s management. At its peak, Forever 21 operated over 700 stores globally with annual sales exceeding $4 billion.
Bankruptcy and Acquisition
Despite its remarkable growth, Forever 21 began facing significant challenges in the late 2010s. The company struggled with:
- Rising competition from online retailers
- Changing consumer preferences
- Overexpansion of physical stores
- Heavy debt load from rapid expansion
These pressures culminated in September 2019 when Forever 21 filed for Chapter 11 bankruptcy protection. The company announced plans to close up to 350 stores worldwide, including 178 in the United States.
In February 2020, Forever 21 found new ownership when a consortium purchased its assets for $81 million. The buying group included Authentic Brands Group, Simon Property Group, and Brookfield Property Partners.
Under this new ownership structure, Forever 21 continues to operate with a more focused retail strategy. Authentic Brands Group manages the brand’s licensing, while Simon Property Group, as a mall operator, helps maintain Forever 21’s physical retail presence.
Current Ownership
Forever 21’s ownership structure has changed significantly since its bankruptcy in 2019, with the fashion retailer now under the control of major retail industry players who have implemented new management strategies.
Authentic Brands Group Role
Authentic Brands Group (ABG) currently owns 50% of Forever 21, sharing ownership with Simon Property Group who holds the other 50%. This partnership formed in 2020 when the two companies, along with Brookfield, finalized the acquisition of Forever 21 following the retailer’s bankruptcy.
ABG specializes in brand development, marketing, and entertainment. Their business model focuses on acquiring struggling yet recognizable brands and revitalizing them through strategic partnerships and licensing agreements.
For Forever 21, ABG has implemented several changes to boost the brand’s relevance, including new collaborations and marketing strategies. The company maintains a portfolio of over 50 brands worth billions, giving them significant experience in brand rehabilitation.
Jamie Salter’s Influence
Jamie Salter, the CEO of Authentic Brands Group, has played a crucial role in Forever 21’s recent history. In a surprising admission during a presentation at ICR, Salter candidly described the Forever 21 acquisition as the “biggest mistake I made.”
Despite this admission, Salter has continued to seek innovative solutions for the brand. Under his leadership, ABG formed a partnership with fast-fashion giant Shein to help revitalize Forever 21’s market position.
Salter’s business approach typically involves maintaining brand identity while finding new revenue streams through licensing and strategic partnerships. His influence has pushed Forever 21 toward more collaborative business models rather than traditional retail approaches.
SPARC Group Partnership
SPARC Group, a joint venture between Authentic Brands Group and Simon Property Group, manages the operations of Forever 21. This arrangement allows ABG to focus on brand management while SPARC handles the day-to-day retail operations.
SPARC also manages other major retail brands including JCPenney, which creates interesting synergies. In 2022, Forever 21 tapped Winnie Park as its CEO, bringing fresh leadership to the brand under SPARC’s operational umbrella.
The partnership structure gives Forever 21 access to extensive retail expertise. SPARC manages everything from store operations to e-commerce platforms while maintaining the brand identity that ABG values.
This operational model represents a modern approach to retail management, separating brand ownership from operational responsibilities.
Business Strategy and Operations
Forever 21’s management approach has shifted significantly since its acquisition by Simon Property Group and Authentic Brands Group. Their joint strategy focuses on streamlining operations while expanding brand reach through innovative retail concepts.
Supply Chain Management
Forever 21 has revamped its supply chain systems to improve efficiency and reduce costs. The company now utilizes a more agile supply chain model that allows them to respond quickly to fashion trends without overstocking inventory.
Their partnership with Simon Property Group has provided strategic advantages in distribution. With access to premium retail locations, Forever 21 can optimize its physical presence while reducing logistics costs.
The brand has also invested in technology to improve inventory tracking and management. This helps them reduce waste and maintain better profit margins in the competitive fast-fashion industry.
Innovation in Retail
Forever 21 has embraced digital transformation to enhance customer experiences both online and in-store. Their mobile app now features augmented reality that allows shoppers to virtually “try on” clothing before purchase.
The retailer has implemented smart mirrors in select stores that suggest complementary items based on what customers are trying on. This technology has helped increase average purchase values by 15%.
Since the acquisition was finalized, Forever 21 has experimented with smaller store formats. These boutique-style locations require less overhead while maintaining the brand’s trendy, affordable image that appeals to their core demographic.
Consumer Brands Integration
Authentic Brands Group has expertly integrated Forever 21 into its portfolio of consumer brands. This strategic alignment allows for cross-promotion opportunities with other ABG-owned fashion labels.
The company has launched several successful co-branded collections with celebrities and other ABG-owned brands. These limited-edition releases create buzz and drive foot traffic to stores.
Forever 21 has expanded its product categories beyond clothing to include home goods, beauty products, and accessories. This diversification strategy helps them capture additional market share and increases the brand’s relevance to consumers.
Recent restructuring has included some difficult decisions. The company has had to close some locations and lay off employees as part of their operational streamlining, indicating the ongoing challenges in balancing growth with profitability in today’s retail environment.
Product Offerings
Forever 21 offers a diverse range of products beyond just clothing. The retailer has expanded its merchandise to include various categories that appeal to style-conscious shoppers looking for affordable fashion options.
Apparel and Accessories
Forever 21’s core business remains fashion-forward apparel for men, women, and children. Their clothing lines feature trendy styles that follow the latest runway looks at budget-friendly prices.
Women’s collections include everything from casual basics to party dresses, while men can find t-shirts, jeans, jackets, and formal wear. The plus-size line, Forever 21+, offers stylish options in extended sizes.
Accessories form a significant part of their merchandise with:
- Statement jewelry
- Handbags and wallets
- Scarves and hats
- Sunglasses
- Hair accessories
These items allow customers to complete their outfits without spending a fortune. Forever 21 refreshes these collections frequently to keep up with changing fashion trends.
Footwear and Beauty
The footwear selection at Forever 21 complements their clothing lines with affordable options including sneakers, boots, sandals, and dress shoes. These designs often mirror popular high-end styles but at much lower price points.
Their beauty department has grown substantially in recent years. Customers can find:
- Makeup products (foundations, lipsticks, eyeshadows)
- Skincare items
- Nail polishes
- Beauty tools and accessories
- Fragrances
The retailer often collaborates with beauty influencers to create limited-edition collections that generate excitement among younger shoppers. These affordable beauty products allow customers to experiment with new looks without major investment.
Lifestyle and Immersive Experiences
Forever 21 has expanded into lifestyle products that reflect their customers’ interests. Their home décor items include bedding, room accessories, and small furnishings that appeal to younger shoppers setting up their first homes.
The brand has embraced immersive retail experiences to engage customers in physical stores. Interactive mirrors, Instagram-worthy photo opportunities, and in-store events create memorable shopping experiences.
Digital engagement has become increasingly important. This includes mobile app shopping, social media campaigns, virtual try-on technology, and loyalty programs.
These immersive experiences help Forever 21 stay relevant in a competitive retail landscape where customers seek more than just products. The brand continues to evolve its offerings to meet changing consumer preferences.
Market Presence and Sales
Forever 21’s position in the retail landscape has evolved significantly since its acquisition by Simon Property Group and Authentic Brands Group. The brand continues to navigate the competitive fast fashion market while adapting to changing consumer preferences.
Fast Fashion Competitors
Forever 21 faces stiff competition in the fast fashion arena. Rivals like Shein have dramatically changed the landscape with ultra-low prices and rapid production cycles. Other major competitors include H&M, Zara, and Fashion Nova.
The brand’s new ownership structure under Simon Property Group and Authentic Brands has helped position it to better compete in this crowded space. This strategic partnership aims to revitalize the Forever 21 brand and secure its place in the fast fashion market.
Since the 2020 acquisition, Forever 21 has worked to differentiate itself through collaborations with popular brands and celebrities. These partnerships help the retailer stay relevant among its target demographic of young shoppers.
Annual Sales Figures
While exact sales figures are not publicly disclosed since Forever 21 is not publicly traded, industry analysts estimate annual revenue between $2-3 billion in recent years. This represents a decline from its peak performance before bankruptcy.
The company’s financial performance is indirectly reflected through Simon Property Group’s retail portfolio metrics. The mall operator has invested significantly in revitalizing the Forever 21 brand to protect its valuable mall tenant.
Sales patterns show seasonal variations with stronger performance during back-to-school and holiday shopping periods. The new ownership has focused on improving profit margins by optimizing store footprints and merchandise selection.
E-Commerce Expansion
Forever 21’s digital transformation has accelerated under its new ownership. The brand has heavily invested in its online platform to compete with digital-native fast fashion retailers.
The company has enhanced its e-commerce presence with improved website functionality, mobile shopping experiences, and faster shipping options. Social media integration has become central to their digital strategy.
Digital sales now represent a growing percentage of total revenue as the brand adapts to changing shopping behaviors. Forever 21 has implemented omnichannel strategies that connect in-store and online experiences.
The partnership with Authentic Brands Group has helped leverage digital marketing expertise to reach younger consumers. This includes influencer collaborations and targeted social media campaigns that drive traffic to both physical stores and online platforms.
Retail Footprint
Forever 21’s physical presence spans across shopping malls and commercial districts worldwide, showcasing the brand’s significant investment in brick-and-mortar retail despite recent restructuring.
Domestic and International Stores
Forever 21 maintains a substantial retail footprint despite recent downsizing efforts. At its peak, the fast-fashion retailer operated over 700 stores globally across North America, Asia, Europe, and Latin America.
After financial challenges and restructuring, the company has strategically reduced its store count. Many locations are situated in prime mall properties owned by Simon Property Group, one of the brand’s current owners.
The company’s domestic stores typically range from 10,000 to 100,000 square feet, with flagship locations in major cities like Los Angeles, New York, and Chicago. These larger stores often feature expanded departments for men’s, women’s, and children’s clothing.
International expansion continues to be part of Forever 21’s strategy, though with more calculated growth than in previous years.
Pop-Up Shops and Experiential Retail
Forever 21 has embraced innovative retail concepts to connect with younger shoppers. Pop-up shops in high-traffic areas allow the brand to test new markets with minimal investment while creating buzz.
These temporary locations often feature Instagram-worthy displays, interactive elements, and exclusive merchandise that drive social media engagement. The brand is leveraging TikTok and other platforms to promote these experiential retail spaces.
Forever 21’s pop-ups frequently collaborate with celebrities, influencers, and other brands to create limited-time shopping experiences that generate excitement. These partnerships help attract foot traffic in an era of declining mall visits.
The retailer also continues to strengthen its e-commerce platform, creating an omnichannel approach where physical stores complement the online shopping experience through services like in-store pickup and returns.
Challenges and Competitions
Forever 21 has faced numerous challenges in the competitive fast fashion industry. The brand has struggled with market changes, fierce competition, and evolving consumer expectations that have impacted its business model.
Competing Brands and Alternatives
Forever 21 operates in a crowded market with many strong competitors. Fast fashion giants like H&M and Zara offer similar styles at competitive prices, while online retailers like ASOS and Shein have gained popularity with digital-savvy shoppers.
Traditional mall brands such as Aéropostale compete for the same youthful demographic. Even established brands like Nautica and Lucky Brand draw from the same customer base with their casual styles.
The competition intensified when Brooks Brothers and Eddie Bauer expanded their offerings to attract younger consumers. These competitors have often been more nimble in responding to trends and consumer demands.
Responding to Market Changes
Forever 21 struggled with over-expansion and inefficient store management, opening too many large stores just as shopping habits were changing. This poor timing coincided with the rise of e-commerce and contributed to their financial troubles.
The brand faced multiple lawsuits from fashion designers alleging copyright infringement. These legal challenges damaged their reputation and diverted resources from innovation.
Forever 21’s inability to stay ahead of competition also hindered their success. While competitors embraced digital transformation, Forever 21 was slow to develop an effective online presence and failed to leverage social media effectively.
Adapting to New Consumer Expectations
As sustainability became more important to shoppers, Forever 21’s fast fashion model faced criticism. Young consumers began favoring brands with ethical practices and environmental consciousness.
The shift in consumer preferences toward unique, personalized items also challenged Forever 21’s mass-produced approach. Shoppers increasingly sought distinctive pieces rather than trendy items everyone owned.
E-commerce posed significant challenges as consumers expected seamless online shopping experiences. Forever 21’s website and app lagged behind competitors like Reebok who invested heavily in digital infrastructure.
The brand struggled to balance affordability with the growing demand for better quality. This tension became a major hurdle as customers became less willing to compromise durability for low prices.
Employment and Company Culture
Working at Forever 21 involves a unique retail environment that has evolved through the company’s growth and changes in ownership. The company’s approach to staffing and workplace practices reflects both industry standards and their specific business model.
Workforce Size and Structure
Forever 21 employs a large workforce to operate its global retail operations. The company has grown to 13,000 employees since its founding in 1984. Most of these workers are sales associates who handle customer service, inventory management, and store operations.
The workforce structure typically follows a retail hierarchy with entry-level positions, department leads, assistant managers, and store managers. Many employees start as part-time workers, especially in store locations. During busy shopping seasons like back-to-school and holidays, Forever 21 often hires additional seasonal staff to manage increased customer traffic.
Store employees usually work in departments like women’s clothing, men’s apparel, or accessories. Visual merchandisers play an important role in creating the store’s aesthetic and displaying new fashion trends.
Employee Development and Retention
Forever 21’s approach to employee development has changed over the years. The company offers basic training for new hires on retail operations, customer service, and merchandise knowledge. Many locations provide on-the-job training rather than formal programs.
Career advancement possibilities exist primarily through internal promotions from sales associate to management positions. However, former employees have noted challenges with retention. One former sales associate described their experience during the company’s bankruptcy period, highlighting the uncertainty workers faced.
After the 2020 acquisition by Simon Property Group, Brookfield Property Partners, and Authentic Brands Group, the company has worked to stabilize its operations. This ownership change potentially impacts workplace culture as the new leadership implements their vision for the retail chain.
Future Directions
The retail landscape for Forever 21 is evolving as its owners navigate challenging market conditions. The brand faces important decisions about partnerships and growth strategies that will determine its long-term viability.
Strategic Partnerships
Forever 21 might explore new strategic partnerships beyond its current ownership structure of Authentic Brands Group and Simon Property Group. A potential collaboration with fast-fashion giants like Shein could help the brand reach younger shoppers and expand its digital presence.
The company has previously benefited from retail partnerships. When Forever 21 was purchased out of bankruptcy in 2020, it gained valuable resources from its new owners.
Tech-focused partnerships might also emerge as the brand seeks to innovate. These could include virtual shopping experiences, AI-powered styling tools, or sustainability initiatives to appeal to eco-conscious consumers.
Growth Opportunities
Despite current struggles, Forever 21 has several potential growth paths.
International expansion remains a viable strategy. This is particularly true in emerging markets where fast fashion continues to gain popularity.
The brand might focus on strengthening its online presence to compete with digital-native retailers. This could involve enhanced mobile shopping experiences and social media integration.
Product diversification presents another opportunity. Forever 21 could expand beyond clothing into beauty, home goods, or accessories to capture additional market share.
Innovation in sustainable fashion might offer a path forward. By developing eco-friendly product lines, the brand could appeal to environmentally conscious younger shoppers while differentiating itself in the crowded fast-fashion space.
