Fast fashion brand Forever 21 is finalising a new partnership to help relaunch in the North American market, with further announcements to come on that soon, according to Authentic Brands Group, the owner of Forever 21’s global intellectual property.
China – where the brand is making its fourth run, having previously entered and exited the world’s second-largest economy three times since 2008 – and the US will be the focus for the near-term, Authentic Brands said in a statement.
In March, Forever 21 filed for bankruptcy in the US for the second time in six years and said it would wind down its domestic operations, hurt by mounting online competition in the fast-fashion sector and weak mall traffic.
After re-launching its China business for the third time in 2022 and opening some brick-and-mortar stores outside of the country’s major fashion capitals, the business quietly wound down again late last year, according to local media reports.
But now, it’s back and making some noise, its bright yellow signature colour popping up in major Chinese cities in recent months with marketing events at music festivals and Forever 21 advertisements plastering train interiors on Shanghai’s metro.
This time around Authentic Brands is partnering with brand operator Chengdi, a company partly owned by e-commerce platform Vipshop Holdings. Chengdi said at a press day for the brand’s relaunch in Shanghai on Thursday that it will focus on localising operations, introducing Forever 21 to a new generation of young consumers in China, and aims to open brick-and-mortar stores in 2026.
Last year, during a presentation, Authentic Brands CEO Jamie Salter said acquiring Forever 21, which was bought out of bankruptcy in 2020, was “probably the biggest mistake I made.”
When asked about those comments this week, a spokesperson for Authentic Brands said Salter “has always believed that (having Forever 21 as part of Authentic Brands Group) is a good idea and he still believes that.”
- Reporting by Casey Hall; Editing by Lincoln Feast, of Reuters.
