![]() The strategy will focus on engaging Gen Z audiences by introducing refreshed creative, targeted digital campaigns, and influential collaborations.Īuthentic Brands Group (ABG) is a brand development, marketing, and entertainment company, which owns a portfolio of global media, entertainment, and lifestyle brands. 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.ĪBG will leverage its marketing expertise and global network of partners to inject new life into the brand, with an emphasis on trend-conscious design, speed to market, and moving towards a more sustainable supply chain. The brand's new owners will also oversee the continued operation of its headquarters in Los Angeles, CA and maintain its robust eCommerce business.įorever 21 is working with various landlords to continue store operations in key regions. Forever 21 will convert its current, owned store operations in Central America, South America, Mexico, the Philippines, and the Caribbean to a licensed partnership model. It is expected that Forever 21 stores will continue to operate across the United States and international territories. The LA-born brand, which was established more than three decades ago, is known for offering a broad selection of on-trend and fashion-forward merchandise at a compelling value. Together, we'll revitalize the brand's core business and connect with audiences around the world through new product offerings and experiences."įorever 21 is a global fashion retailer of women's, men's, and kid's clothing, accessories, and footwear, as well as beauty. "We're looking forward to working with the F21 team and our global partners. "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. This acquisition further diversifies ABG's experiential retail and eCommerce vertical and boosts the value of its brand portfolio to $12.5 billion in global annual retail sales. Building on the success of Aéropostale, this similar ownership structure positions Forever 21 for long-term performance and growth. With this move, ABG, Simon, and Brookfield become the new ownership group for Forever 21. 19, 2020 /PRNewswire/ - Authentic Brands Group (ABG), a global brand development, marketing, and entertainment company, today announced the acquisition of America's original fast fashion retailer, Forever 21. ABG and Simon Property Group (Simon) (NYSE: SPG) will each own 37.5 percent, and Brookfield Property Partners (Brookfield) (NASDAQ: BPY) will own 25 percent of the intellectual property and operating businesses. NEW YORK and INDIANAPOLIS and CHICAGO, Feb. Our plan is above where we thought it was going to be, so that’s very encouraging, but in order to turn JCPenney into a 21st century retailer, that’s still work in progress.ABG, Simon, and Brookfield Forge a Strategic Partnership to Acquire Forever 21 and Position the Brand for Sustainable Growth “I’ve been proud of the execution and, so far, the results. “The first goal is to rightsize the company, strengthen the financial capabilities, repairing vendor relationships that we need to do, stabilize the morale and so on,” Simon added. Separately, through its SPARC Group venture with Authentic Brands Group, Simon suggested that labels under the firm’s portfolio - which includes Forever 21, Lucky Brand and Brooks Brothers - could even end up in some of JCPenney’s 672 outposts across the country by next year. According to the chain, the layoffs were made in order to “better meet our strategic priorities” under new ownership. JCPenney also recently slashed 650 jobs across its stores, field operations and corporate headquarters - or about 1.5% of the chain’s workforce, which currently has more than 50,000 employees. “When you go through bankruptcy, not only landlords get burned, but vendors get burned, and so it’s very important for us as new owners taking Penney out of bankruptcy that we give the vendors comfort that we’re going to be around.” “We’re seeing more and more confidence from the vendor community,” explained Simon. But even after Simon and Brookfield Property Partners bought the chain out of bankruptcy, suppliers appear reluctant to advance shipments. ![]() Still, the Texas-based retailer is in “stabilization mode and capital preservation mode.” In the call, Simon noted that JCPenney must work on reestablishing relationships with vendors, who were initially hesitant to extend orders and risk losing millions of dollars ahead of a firm restructuring deal. Simon Says Demand for Mall Space Is Strong, Despite Recession Concerns ![]()
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