Authentic Brands Group, a global brand development, marketing and entertainment company, has announced the acquisition of Forever 21. ABG and Simon Property Group will each own 37.5 percent, and Brookfield Property Partners will own 25 percent of the intellectual property and operating businesses. 

“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 business there,” 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 store Barneys. The deal closed for $271 million.