Love 21

Forever 21

Company type	Private (formerly family-owned)
Industry	Retail (fast fashion)
Predecessor	Fashion 21
Founded	April 16, 1984 (1984-04-16) in Highland Park, Los Angeles, United States
Founder	Do Won Chang and Jin Sook Chang
Defunct	2025 (2025) (U.S. operations)
Fate	Filed for Chapter 11 bankruptcy in 2019; U.S. operations ceased 2025; intellectual property acquired by Authentic Brands Group
Successor	Catalyst Brands (management before bankruptcy), Authentic Brands Group (intellectual property owner)
Headquarters	Los Angeles , United States
Area served	Worldwide (including Mexico and international markets)
Key people	Winnie Park (CEO)
Products	Apparel for women, men, children; accessories; beauty products; home goods
Owner	Authentic Brands Group (intellectual property)
Number of employees	43,000 (2019)
Parent	Catalyst Brands (before bankruptcy)

Overview

F21 OpCo LLC, widely recognized by its trade name Forever 21, was a global fast-fashion retailer. Established initially as Fashion 21 in 1984 in Highland Park, Los Angeles, the company quickly grew to become a prominent name in the fashion industry. Prior to ceasing its U.S. operations, Forever 21 was managed by Catalyst Brands and operated approximately 540 stores across various locations. The brand’s intellectual property is presently held by Authentic Brands Group.

Forever 21 specialized in offering a variety of products including apparel for women, men, and children, along with accessories, beauty items, and home goods. The enterprise was founded by Do Won Chang and Jin Sook Chang and had expanded its footprint worldwide. Although the U.S. segment of the business declared bankruptcy and underwent liquidation in 2025, the company continues to maintain a presence in markets such as Mexico and other international regions.

The organization employed around 43,000 people as of 2019 and was led by CEO Winnie Park. Its subsidiaries included Forever 21 International, F21 Red, XXI Forever, Love 21, and Riley Rose. Despite its success, Forever 21 faced multiple controversies related to labor practices and allegations of copyright infringement throughout its history.

History

Forever 21 store at Lehigh Valley Mall in Whitehall Township, Pennsylvania, October 2020

Forever 21 location at Denver Pavilions in Denver during liquidation, November 2019

Forever 21 outlet in Hong Kong, August 2012

Forever 21 branch in Montreal, March 2014

Forever 21 at SM Megamall in the Philippines, December 2024

1984–2017: Founding and Growth

Initially operating under the name Fashion 21, Forever 21 was established in Los Angeles on April 16, 1984, by Do Won Chang and Jin Sook Chang, a married couple who immigrated from South Korea. The original retail space measured approximately 900 square feet (84 m²) and was situated at 5637 N. Figueroa Street within Los Angeles' Highland Park neighborhood. The business was launched with $11,000 of personal savings, focusing on apparel styles reminiscent of those popular in South Korea and catering primarily to the local Korean American demographic. Inventory was sourced from wholesale clearances offered by manufacturers. The first year's sales amounted to roughly $700,000. Subsequently, the founders rebranded Fashion 21 as Forever 21 and adopted a fast fashion approach—emphasizing current trends while maintaining affordable pricing. Within its first decade, the company expanded rapidly, opening new outlets approximately every six months, predominantly located inside shopping malls.

In 2005, Forever 21 acquired the retail chain Gadzooks for $33 million, which enabled it to double its store count to around 400 within two years. Industry analysts projected an increase in revenues from $640 million in 2005 to $1 billion by 2006. Unlike many competitors that targeted exclusively teenagers, Forever 21 broadened its market to include entire families and operated significantly larger stores averaging about 25,000 square feet. In 2006, the company unveiled a flagship location spanning approximately 40,000 square feet in Pasadena, California, offering apparel for women, men, and children alongside accessories and lingerie. Additionally, Forever 21 maintained an online presence and operated several standalone For Love accessory stores. The total retail space increased by roughly thirty percent in 2007. According to an April 2008 report from the Chicago Tribune, while other retailers were reducing expansion efforts due to economic conditions, Forever 21 continued aggressive growth—doubling its global store count to about 400 over the preceding three years.

By 2011, the company's assets reached $1.4 billion with profits of $124 million. That year also saw several controversies involving the brand. The Center for Environmental Health identified that Forever 21 was among twenty-six retailers selling jewelry containing cadmium—a hazardous metal. This led to a settlement in September involving a payment of $1.03 million and a mandate limiting cadmium content in jewelry to no more than 0.03%. Also during this period, some women's shirts sold by Forever 21 drew criticism online for appearing to promote anti-intellectual and sexist messages—for example shirts with slogans such as "Allergic to Algebra," "Skool sucks," and one featuring "I heart school" on the front paired with "not ..." on the back. Responding to ABC News, the company clarified that there was no intention to disparage education and subsequently removed the "Allergic to Algebra" shirt from its offerings. In April of the previous year (2010), Rachel Kane—a writer and customer—launched a blog named WTForever21.com, where she shared photos of Forever 21 products along with her personal critiques. The blog gained attention after being featured on the Jezebel site; however, in June of that year Forever 21 requested its removal under threat of legal action. A class action lawsuit was filed against Forever 21 in September 2012 after a customer received less than full value during a product return. Media coverage indicated that for damages to meet the $15,000 threshold required for litigation progress, approximately an additional 750,000 plaintiffs would have had to join. Forever 21 declined to comment due to ongoing legal proceedings.

By the year 2013, Forever 21 operated over 480 stores globally with revenues reaching $3.7 billion. Between the years of 2005 and 2015 alone, international locations surged from seven to more than two hundred sixty-two. Remaining a family-owned enterprise—with Linda Chang serving as executive vice president, and Esther Chang holding the position of vice president of merchandising,—the company’s peak sales occurred in fiscal year 2015 when global revenues hit $4.4 billion.

The brand continued expanding internationally; by the year ending in December 2016 it operated thirty-one stores across Brazil, despite having recently exited markets such as Spain and Belgium. In addition to apparel retailing activities, Forever 21 launched the beauty brand Riley Rose in early 2017, followed later that year by opening its twenty-first store within India.<ref>"Forever 21 opens twenty-first store in India". Apparel Resources. December 11 ,2017. Retrieved September26 ,2022. {{cite web}}: Check date values in: |access-date= and |date= (help); no-break space character in |date= at position 9 (help); no-break space character in |title= at position 8 (help)</ ref> However,income fell significantly by that same year,to $3.4 billion compared with prior levels.< ref>Forbes /companies /forever -211/#7d5e6745365f https://www.forbes.com /companies /forever -211/#7d5e6745365f. Retrieved November26 ,20l8l language=en. {{cite news}}: Check |url= value (help); Check date values in: |access-date= (help); Missing or empty |title= (help); Missing pipe in: |access-date= (help); Text ""Forever -211on Forbes America's Largest Private Companies List"" ignored (help)</ ref>

2018–2019: Market Challenges and Bankruptcy Proceedings

Confronted with intensifying rivalry from other fast fashion retailers, Forever 21 initiated a reduction in its store footprint in 2018 amidst what has been termed a retail apocalypse. The brand exited the Dutch market in January 2018, followed by Thailand in June of the same year, and subsequently Ireland by the end of 2018. On March 31, 2019, Forever 21 ceased operations in Taiwan. In July 2019, the company faced allegations of fat shaming after weight-loss bars were included with orders for plus-sized apparel; the retailer issued an apology, attributing the incident to an "oversight."

The surge of fast fashion competitors worldwide, combined with reputational harm stemming from criticism by labor rights activists and environmental advocates, along with high rental expenses in prime locations and mounting competition from online retailers, precipitated a significant downturn in global activities. In 2019, Forever 21's international sales declined by 32%. According to Women's Wear Daily, the bankruptcy was partly due to excessive expansion through oversized stores and insufficient development of e-commerce channels. On September 29, 2019, the company filed for Chapter 11 bankruptcy protection. As part of its restructuring strategy, Forever 21 announced plans to withdraw from 40 countries and shutter a portion of its approximately 600 stores—particularly those situated across Asia and Europe—to concentrate on its profitable core operations within the United States and Latin America. The company also emphasized strengthening its e-commerce platform and licensing partnerships.

Over the following year, Forever 21 exited additional markets including Hong Kong, Portugal, Japan, and Canada. It also discontinued both its online presence and physical outlets in the United Kingdom.

2020–present: Ownership under SPARC

By the start of 2020, Forever 21 had shuttered 350 of its 815 international outlets under the leadership of president Alex Ok. In January of that year, the brand relaunched its e-commerce platform across 30 countries via the online retail company Global-e, focusing on markets in Canada, the Asia Pacific region, and Latin America. On February 2, 2020, Forever 21 announced an agreement to sell all its assets for $81 million to a consortium including Simon Property Group, Brookfield Properties, and Authentic Brands Group (ABG), a brand management entity. ABG and Simon each obtained a 37.5% share of the company’s intellectual property and operational businesses, while Brookfield secured the remaining 25%. Following the acquisition, SPARC—a joint venture between Simon Property Group and Authentic Brands Group—assumed control over Forever 21’s management and appointed Daniel Kulle as the new CEO. Kulle promptly initiated expansion efforts in Latin America through licensing agreements. The company temporarily closed its stores in March 2020 as a response to the COVID-19 pandemic.

In June 2020, Authentic Brands Group designated IB Group as Forever 21’s licensee for operations in Mexico. That same month, Forever 21 re-entered the United Kingdom and European Union markets by launching online stores targeting British consumers. In October 2020, a licensing agreement was finalized with AR Holdings to introduce the brand across nine Latin American countries. Early in 2020, the retailer withdrew from several markets including Guam, South Africa, and Lebanon.

Brookfield Property Partners divested its stake in Forever 21 for $63 million in May 2021. Following YM Inc.’s appointment as the Canadian licensee in June 2021, Hudson’s Bay announced a collaboration with Forever 21 within Canada. In August of that year, Lasonic Limited Xusheng Co. Ltd. was authorized to oversee Forever 21’s operations in China; concurrently, the brand reestablished its presence on major Chinese e-commerce platforms such as Vip.com and Pinduoduo. By December 2021, Forever 21 operated approximately 540 locations globally and partnered with JCPenney—also owned by Authentic Brands Group—on product lines. That month, Virtual Brand Group was engaged to develop a metaverse game allowing users to manage virtual fashion stores. Winnie Park was named CEO in January 2022.

In April 2022, Authentic Brands Group initiated legal proceedings against Bolt Financial in New York for failing to deliver promised technological solutions, alleging that Forever 21 lost over $150 million in online sales due to a flawed rollout of a new e-commerce platform during 2021. ABG described Bolt’s integration with Forever 21’s mobile application as highly problematic with numerous technical failures disrupting transactions; Bolt contested these allegations.

Throughout early 2022, Forever 21 launched collaborative collections with Hervé Léger, Sports Illustrated, and Barbie. During summer of that year, a new flagship store opened in India under a licensing agreement with Aditya Birla Fashion and Retail. In June 2022, Poetic Brands secured licensing rights to produce, market, and distribute Forever 21 products throughout the United Kingdom and Europe.

In August 2023, Shein and SPARC Group formed a joint venture whereby each acquired minority stakes in the other; Shein obtained roughly one-third ownership of SPARC Group.

By February 2025, reports indicated that Forever 21 was working alongside restructuring firm BRG to explore various strategic options including divesting profitable leases to avoid a second bankruptcy filing. Later that month, plans were announced to close approximately 215 underperforming stores—most scheduled for shutdown by April—citing prolonged lack of profitability at these locations.

On March 3, 2025, Forever 21 laid off nearly 700 employees across California and Pennsylvania while also announcing closure of its Los Angeles headquarters. The company signaled preparations for filing Chapter 11 bankruptcy within days due to ongoing difficulties securing buyers for its retail outlets. Two weeks later, on March 17, Forever 21 filed for Chapter 11 bankruptcy protection in Delaware for the second time within six years. The filing listed liabilities ranging from $1 billion to $5 billion and assets between $100 million and $500 million; declining mall traffic and competition from brands such as Temu and Shein were cited as contributing factors. That same day marked the commencement of liquidation sales at all U.S. stores after failure to find a buyer resulted in permanent closure of the remaining approximately 350 domestic locations. International operations along with intellectual property and trademarks—owned by Authentic Brands Group—remained unaffected by this bankruptcy filing. By May 1, all U.S.-based Forever 21 stores had ceased operations permanently.

Employee relations and safety

In September 2001, the Asian Pacific American Legal Center together with the Garment Worker Center, organizations advocating for labor rights, initiated legal action against Forever 21, accusing the company of breaching labor regulations. They alleged that 19 contracted workers were compensated below the minimum wage, that recorded working hours were manipulated on time cards, that employees who reported issues to state authorities were terminated, and that the working environment resembled sweatshop conditions. Forever 21 refuted these claims, emphasizing its dedication to ethical labor standards and noting that none of the individuals named in the lawsuit were directly employed by the corporation. The garment workers organized a nationwide boycott lasting three years, which was documented in the 2007 film Made in L.A.. The lawsuit was eventually dismissed by U.S. District Court Judge Manuel Real. Subsequently, in 2002, Forever 21 filed a defamation lawsuit claiming that the allegations and resulting protests had negatively affected its reputation and sales figures. Kimi Lee, director of one of the advocacy groups representing the workers, countered by stating that the legal actions were warranted based on grievances from 20 employees. Both legal disputes concluded with a settlement agreement reached in December 2004.

In January 2012, five Forever 21 staff members brought forward a class-action complaint alleging unpaid compensation for time spent on bag checks and additional tasks during lunch breaks. Following investigations by the United States Department of Labor revealing wage and record-keeping violations among some of Forever 21’s suppliers, a subpoena was issued in August 2012. When Forever 21 failed to comply with document requests, U.S. District Court Judge Margaret Morrow mandated the retailer to produce the subpoenaed materials. The company stated it had attempted to cooperate with the Labor Department and had submitted the necessary information. Later, in July 2014, OSHA recommended penalties exceeding $100,000 for three retail outlets located in Northern New Jersey and Manhattan due to "serious safety hazards" cited since 2010.

Licensing disputes

Forever 21 has encountered multiple legal challenges related to intellectual property, specifically lawsuits concerning its design practices. In 2007, the company characterized its design approach as proprietary, clarifying that it did not employ traditional designers but rather relied on "very savvy designer merchants" whose identities were not publicly disclosed. The firm also stated it collaborated with numerous suppliers and was not always aware of the original sources of their designs. Known for refreshing its product lines every six to eight weeks to keep pace with evolving fashion trends, Forever 21 was highlighted by The New York Times in 2007 for its rapid turnaround—delivering versions of runway styles within six weeks, compared to several months taken by established designers such as Marc Jacobs or Michael Kors. Critics like Susan Scafidi, a copyright law specialist, have questioned Forever 21’s design process, arguing that it effectively replicates others’ creations. CEO Chang admitted that some merchant partners had let him down after he "overly trusted people" regarding design integrity.

By October 2007, the number of lawsuits against Forever 21 had surpassed twenty, with claims filed by brands including Trovata, Anna Sui, Harajuku Lovers, and Diane von Fürstenberg Studio. During this period, Diane von Fürstenberg was actively advocating in Congress for expanded copyright protections covering clothing designs. Nevertheless, The New York Times noted that existing U.S. law at the time did not safeguard clothing designs from duplication—except for logos—casting doubt on the likelihood of these cases resulting in judgments against Forever 21. That same year, Forever 21 was legally prohibited from replicating DVF designs. Among these disputes, only the Trovata lawsuit proceeded to a jury trial; after a mistrial where the majority of jurors sided with Trovata, Forever 21 opted to settle before a retrial could occur in May 2009. Up through 2011, Forever 21 had not been found liable in court, with most cases concluding via settlements. In 2011, the company issued a cease-and-desist letter to the operator of WTForever21.com—a blog known for satirical commentary on Forever 21’s merchandise—which sparked backlash online and was widely reported as an example of corporate intimidation.

On 8 January 2015, Canadian news outlets reported that Granted Clothing, a family-run business based in Richmond, British Columbia, accused Forever 21 of copying and mass-producing their sweater designs for sale on the retailer’s website. The dispute was settled amicably out of court by April 2015. Later that month, software companies Adobe Systems, Autodesk, and Corel collectively filed a lawsuit against Forever 21 alleging unauthorized use of their products—specifically Adobe Photoshop, AutoCAD, and PaintShop Pro. Forever 21 denied these allegations and requested a jury trial, contending that Adobe was engaging in bullying tactics over licensing fees and claiming an "implied" license since the software was bundled with other purchased products. This legal matter was resolved through settlement in March 2016. In September 2019, American singer Ariana Grande filed a $10 million lawsuit against Forever 21, accusing the retailer of imitating her style and likeness by dressing models to resemble her appearance from the "7 Rings" music video photo shoot.

Stores

Forever 21 maintains retail locations across several countries. By May 2022, the company managed more than 600 outlets, including 407 stores within the United States as of July 2022, spread over 43 states. The greatest concentrations of these stores are found in California, Texas, Florida, New York, Georgia, New Jersey, Pennsylvania, and Illinois. The original Los Angeles store, which carried the brand's initial name, operated until 2020. Internationally, the majority of Forever 21’s shops function through franchising agreements or, in select markets, via joint ventures with local entities. On average, each store encompasses approximately 38,000 square feet.

Further reading

• "Faster Fashion, Cheaper Chic", New York Times, 10 May 2007
• "Fast, Cheap and Under Control: The rise of Forever 21 and Downtown's wholesale economy", New Angeles Monthly, December 2007
• "Fast-fashion concept fuels Forever 21's expansion", Los Angeles Times, 23 June 2008

Videos

• "The Rise And Fall Of Forever 21". Business Insider. 2019-09-13. Archived from the original on 2021-12-21.

External links

• Official website (Archive)