Landlords collaborate with Authentic Brands Group to rescue Forever 21

1 min readUpdated Feb 3, 2020Feb 4, 202011:00 PM

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Control of collapsed Californian fast-fashion chain Forever 21 is about to be handed over to a consortium of creditors led by property companies.

According to recently filed court documents, Simon Property Group and Brookfield Property Partners along with Authentic Brands Group have agreed to pay US$81 million for Forever 21’s assets, which include its beauty store brand Riley Rose and its online store.

That’s a stark contrast to Forever 21’s global sales at its peak in 2015 at $4.4 billion and $3.4 billion in 2017.

Forever 21 is said to owe millions in unpaid rent to Simon and Brookfield and the deal will likely allow the mall operators to keep the stores trading as tenants.

Authentic Brands Group, which describes itself as “brand owners, curators, and guardians”, has 50 labels in its portfolio, including Nine West, Aeropostale, and Juicy Couture, all rescued from near collapse. Nautica, Muhammid Ali, Spyder, Jones New York, Frye, and Barneys New York are also under its management.

Forever 21 was founded in 1984 by Korean immigrants Do Won Chang and his wife Jin Sook Chang. It filed for bankruptcy in September last year and has since closed about 100 stores.

However, in January the company announced a new partnership with e-commerce specialist Global-e to launch a new international online store supporting nearly 100 currencies and more than 150 local and alternative payment methods, along with localized tax collection and duties calculations. The site will feature 21 languages and signals a shift away from physical stores to a strong online presence to protect the brand in the future.

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What this means

This landlord-led rescue of Forever 21, coupled with Authentic Brands Group's proven brand revitalisation model, is a pragmatic move to secure rents and use existing infrastructure. While Shein acquired an equity stake in Forever 21 in 2026, this earlier acquisition suggests a different path, focusing on stabilising physical retail and capitalising on a recognised name. The emphasis on a new, localised international e-commerce platform aims to offset past physical store closures and adapt to evolving consumer habits. This strategy pressures rivals relying solely on brick-and-mortar growth, especially given Tiffany & Co.'s recent physical expansion in Singapore. The primary risk lies in whether the brand can truly reconnect with consumers online after years of decline. Watch the growth rate of its new international online store sales figures.

Rajiv Menon · Retail News Asia newsroom

Questions & Answers

What is the agreed price for Forever 21’s assets?

The consortium of creditors, led by Simon Property Group and Brookfield Property Partners along with Authentic Brands Group, has agreed to pay US$81 million for Forever 21’s assets. These assets include its beauty store brand Riley Rose and its online store.

Which other brands does Authentic Brands Group manage?

Authentic Brands Group manages 50 labels, including Nine West, Aeropostale, Juicy Couture, Nautica, Muhammid Ali, Spyder, Jones New York, Frye, and Barneys New York. Many of these were also rescued from near collapse.

What is Forever 21’s current strategy regarding its online presence?

Forever 21 recently launched a new international online store with Global-e, supporting 100 currencies, 150 payment methods, and 21 languages. This signals a shift towards a strong online presence away from physical stores.

When did Forever 21 file for bankruptcy and how many stores have closed?

Forever 21 filed for bankruptcy in September last year. Since then, the company has closed approximately 100 stores. This follows a period where its global sales significantly declined from a peak in 2015.

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