“Forever 21 is a powerful retail brand with incredible consumer reach and a wealth of untapped potential,” says Jamie Salter, founder, chairman and chief executive officer, 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 stores are expected to continue operations across the United States and international territories. The brand’s new owners will also oversee the continued operation of its headquarters in Los Angeles, Calif. and maintain its e-commerce business.
“With Forever 21, we do think there is a businessthere,” David Simon, chief executive officer, Simon Property Group, told analysts.
“But it has to be turned around... We’ve got our work ahead of us. But if we are successful... we will make money at Forever 21. We make these investments for the sole purpose of we think there is a return on investment. We would not be attempting to do Forever 21 for the sole purpose of maintaining our rent. Forever 21 took its eye off the ball... primarily because of international growth. Obviously, the store size... got too big.”
Authentic Brands Group recently purchased another well known brand after it filed for bankruptcy – department storeBarneys.
The deal closed for $271 million.
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