AUTHENTIC BRANDS FINALIZES FOREVER 21 ACQUISITION

Authentic Brands Group (ABG) has finalized 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. Purchase price was not disclosed.

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.

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, CA and maintain its e-commerce business.

Forever 21 is working with various landlords to continue store operations in key regions. The retailer 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, Middle East, and India.

“Forever 21 is a powerful retail brand with incredible consumer reach and a wealth of untapped potential,” said 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.”