Fans of Forever 21 didn’t have to mourn the loss of its departure for long. Authentic Brands Group has announced new operating partners for the one-time retail giant, which filed for bankruptcy earlier this year.
As Fashionista reports, this transition “into a Digital-first, Consumer-led Brand” means that several “strategic partners” will head up different divisions in a three-pronged approach. Unique Brands will run Forever 21’s U.S. e-commerce operations and men’s wholesale; Mark Edwards Apparel is now the U.S. women’s wholesale partner; and Kidz Concepts will be the brand’s U.S. partner for kidswear.
You may recall that just over 6 months ago, the brand made their fateful announcement. “After careful deliberation, we have made the decision to file for chapter 11 bankruptcy protection under chapter 11 of the U.S. Bankruptcy Code. We are deeply grateful for the support you have shown us over the years, but rising costs and increased competition from abroad have made our current business model unsustainable.” This was the second time Forever 21 had done the Chapter 11 tango – their first bankruptcy filing was back in 2019 – and when all of their stores closed down in May, it did seem like this was the nail in the coffin.
But Forever 21, like a phoenix rising from the ashes, does really seem to be forever.
“This marks a sensational new chapter for Forever 21 and underscores our commitment to meeting consumers where they are,” said Jarrod Weber, Global President, Sports & Lifestyle, Authentic Brands Group. “By aligning with expert operators in digital commerce, wholesale and youth apparel, we are setting Forever 21 up for long-term relevance and success, delivering fast, accessible fashion to Millennial, Gen Z and future generations through the channels they trust and prefer.”
As for the possibility of brick-and-mortar stores, “We are in advanced discussions with a leading retail operating partner to open new U.S. stores,” Authentic Brands Group shared in a statement. “This is part of our commitment to maintaining a physical presence for the brand and ensuring its continued success by balancing its touch points across digital and in-store experiences. We look forward to sharing more details in the coming year.”
Stay tuned….
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