Riley Rose

Forever 21

Forever 21 logo
Company type	Private
Industry	Apparel retail
Founded	April 16, 1984 (1984-04-16) in Highland Park, Los Angeles, United States
Founder	Do Won Chang, Jin Sook Chang
Defunct	May 2025 (2025-05)
Fate	U.S. operations ceased; brand acquired by Authentic Brands Group
Headquarters	Los Angeles , United States
Area served	Worldwide (select international markets)
Key people	Winnie Park (CEO, late years), Daniel Kulle (CEO after SPARC acquisition)
Products	Apparel for women, men, and children; accessories; beauty items; home goods
Owner	Authentic Brands Group (intellectual property)
Number of employees	43,000 (2019)
Website	www.forever21.com

Overview

F21 OpCo LLC, operating under the trade name Forever 21, was a global fast-fashion retailer. Established in 1984 in Highland Park, Los Angeles, it initially launched as Fashion 21. Prior to ceasing its U.S. operations, the company was managed by Catalyst Brands and operated approximately 540 stores domestically. The brand's intellectual property is currently held by Authentic Brands Group.

Business Profile

Forever 21 specialized in offering a wide range of products including apparel for women, men, and children, along with accessories, beauty items, and home goods. Founded by Do Won Chang and Jin Sook Chang, the company became a significant player in the apparel industry. At its peak, it employed around 43,000 individuals worldwide as of 2019 and maintained about 190 locations globally following the U.S. market exit. Winnie Park served as CEO during its later years.

Corporate Structure

The enterprise operated through various subsidiaries such as Forever 21 International, F21 Red, XXI Forever, Love 21, and Riley Rose. It functioned as a privately held company until its U.S. division declared bankruptcy and proceeded with liquidation in May 2025. Despite these challenges, Forever 21 continues to maintain operations in markets including Mexico and other international territories.

Controversies

Throughout its history, Forever 21 faced multiple controversies related to labor practices and allegations of copyright infringement. Nonetheless, it remained influential within the fast-fashion sector by making current trends affordable and accessible while promoting individual style and confidence on a global scale.

History

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

Forever 21 undergoing liquidation at Denver Pavilions in Denver, November 2019

Forever 21 location in Hong Kong, August 2012

Forever 21 outlet in Montreal, March 2014

Forever 21 at SM Megamall in the Philippines, December 2024

1984–2017: establishment and growth

Initially operating under the name Fashion 21, the retailer was launched on April 16, 1984, in Los Angeles by South Korean immigrant couple Do Won Chang and Jin Sook Chang. The first store measured approximately 900 square feet (84 m²) and was situated at 5637 N. Figueroa Street in Los Angeles' Highland Park neighborhood. With an initial investment of $11,000 from their savings, the Changs targeted the local Korean American community by offering styles similar to those popular in South Korea, sourcing inventory primarily through wholesale closeouts from manufacturers. The store achieved sales of around $700,000 during its inaugural year. Subsequently, the brand transitioned from Fashion 21 to Forever 21 and adopted a fast fashion approach, emphasizing trendy apparel at affordable prices. During its first decade, the company expanded rapidly, opening new outlets approximately every six months, predominantly within shopping malls.

In 2005, Forever 21 acquired the retail chain Gadzooks for $33 million, doubling its store count to roughly 400 within two years. Analysts projected an increase in sales from $640 million in 2005 to $1 billion by 2006. Unlike many competitors focusing solely on teenagers, Forever 21 targeted entire families and operated larger stores averaging about 25,000 square feet. A notable expansion occurred in 2006 with the launch of a flagship location spanning 40,000 square feet in Pasadena, California, featuring apparel for women, men, and children alongside accessories and lingerie. The brand also maintained an online presence and operated standalone For Love accessory outlets. By 2007, the company's retail space had grown by approximately 30%. In April 2008, despite a general industry slowdown due to economic conditions, Forever 21 was expanding aggressively; its global store count had doubled to around 400 over the preceding three years.

By 2011, Forever 21's assets were valued at $1.4 billion with profits reaching $124 million. That year brought several controversies: the Center for Environmental Health identified cadmium—a hazardous metal—in jewelry sold by Forever 21 among other retailers. This led to a settlement requiring a payment of $1.03 million and imposing a cadmium limit of 0.03% in jewelry products. Additionally, some women's shirts drew criticism online for perceived anti-education and sexist messaging—examples included slogans like "Allergic to Algebra," "Skool sucks," and a shirt bearing "I heart school" on the front but "not ..." on the back. Forever 21 responded by removing the controversial "Allergic to Algebra" shirt from its website, clarifying that there was no intent to disparage education. In April 2010, customer and writer Rachel Kane launched WTForever21.com, a blog showcasing product images and personal commentary on Forever 21 items. The blog gained traction after coverage by the Jezebel website; however, in June 2011 Forever 21 requested its removal under threat of legal action. In September 2012, a class action lawsuit was filed against Forever 21 after a customer received one cent less than the purchase price during a return transaction. Media sources noted that for the suit to proceed under damages requirements, approximately 750,000 additional plaintiffs would need to join. Forever 21 declined comment due to ongoing litigation. and Esther Chang as vice president of merchandising,—the company achieved peak global sales of $4.4 billion in 2015. Continued international growth included operating 31 stores in Brazil as of 2016, though it had recently exited markets such as Spain and Belgium. The brand launched its beauty retail chain Riley Rose in 2017, and opened its twenty-first Indian store later that year. However, revenue declined significantly to $3.4 billion by the end of that year.

2018–2019: Market Challenges and Bankruptcy Proceedings

Confronted with increasing rivalry from other fast fashion retailers, Forever 21 initiated a reduction of its store footprint in 2018 amid what has been referred to as a retail apocalypse. The company 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 also withdrew from Taiwan. In July 2019, the brand faced backlash for allegedly engaging in fat shaming after weight-loss bars were included with orders containing plus-size apparel. The company issued an apology, attributing the incident to an "oversight."

The surge in global fast fashion competitors, combined with negative publicity stemming from labor rights and environmental concerns, elevated rental expenses at prime locations, and intensified online retail competition, culminated in a significant downturn in the company’s worldwide operations. During 2019, Forever 21 reported a 32% decline in international sales. Women's Wear Daily noted that the bankruptcy was partly due to excessive expansion with overly large stores and insufficient development of e-commerce capabilities. On September 29, 2019, Forever 21 filed for Chapter 11 bankruptcy protection. As part of its restructuring efforts, the company announced plans to cease operations in 40 countries and shutter a portion of its approximately 600 stores—particularly those located across Asia and Europe—while concentrating on its profitable core business within the United States and Latin America. Additionally, emphasis was placed on e-commerce platforms and licensing arrangements.

Over the subsequent year, Forever 21 withdrew from several markets including Hong Kong, Portugal, Japan, and Canada. The brand also discontinued both its physical retail presence and online operations in the United Kingdom.

2020–present: Ownership under SPARC

By the start of 2020, the company had shuttered 350 out of its 815 international outlets during the tenure of president Alex Ok. That same month, Forever 21 relaunched its e-commerce platform across 30 countries in collaboration with Global-e, focusing on markets in Canada, Asia Pacific, and Latin America. On February 2, 2020, it was disclosed that Forever 21 agreed to sell its assets for $81 million to a consortium comprising Simon Property Group, Brookfield Properties, and brand management company Authentic Brands Group (ABG). ABG and Simon each acquired a 37.5% share of the brand's intellectual property and operational businesses, while Brookfield took a 25% stake. Following the acquisition, SPARC—a joint venture between Simon Property Group and Authentic Brands Group—assumed control of Forever 21’s management and appointed Daniel Kulle as the new CEO. Kulle promptly initiated expansion efforts in Latin America through licensing agreements. In response to the COVID-19 pandemic, all stores were closed through March 2020.

In June 2020, ABG designated IB Group as Forever 21’s licensee in Mexico. That month also saw the brand re-entering the UK and European Union markets by launching online stores for UK customers. Later in October, a licensing agreement was signed with AR Holdings to introduce Forever 21 in nine Latin American countries. Early in 2020, the company 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. Subsequently, YM Inc. became the Canadian licensee for Forever 21 in June 2021, coinciding with Hudson’s Bay announcing a partnership with the brand within Canada. In August 2021, Forever 21 authorized Lasonic Limited Xusheng Co. Ltd. to oversee operations in China; concurrently, it reestablished presence on major e-commerce platforms such as Vip.com and Pinduoduo. By December 2021, the retailer operated 540 locations globally and collaborated with JCPenney—also owned by Authentic Brands Group—on product lines. That same month, Forever 21 engaged Virtual Brand Group to develop a metaverse game enabling users to manage customized virtual fashion stores.

Winnie Park was named CEO of Forever 21 in January 2022. In April of that year, ABG filed a lawsuit against Bolt Financial in New York for failing to deliver promised technology solutions, attributing $150 million in lost online sales to a flawed rollout of a new e-commerce platform during 2021. ABG described Bolt’s software integration with Forever 21’s mobile app as highly problematic due to multiple technical glitches affecting transactions; Bolt denied these allegations.

In early 2022, Forever 21 launched collaborations with Hervé Léger, Sports Illustrated, and Barbie. During the summer of that year, the company opened a new flagship store in India under license from Aditya Birla Fashion and Retail. In June 2022, Poetic Brands obtained licensing rights to manufacture, market, and distribute Forever 21 products across the United Kingdom and Europe.

In August 2023, Shein and SPARC Group formed a joint venture wherein each acquired minority stakes in the other; Shein purchased approximately 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 selling profitable leases as a measure to avoid a second bankruptcy filing. Later that month, it was announced that Forever 21 planned to close around 215 underperforming stores by April due to prolonged unprofitability.

On March 3, 2025, Forever 21 laid off nearly 700 employees across California and Pennsylvania and revealed plans to close its Los Angeles headquarters. The company also signaled preparations for filing Chapter 11 bankruptcy imminently after continued difficulties securing a buyer for its retail locations. On March 17, 2025, Forever 21 filed for Chapter 11 bankruptcy protection in Delaware for the second time within six years, reporting liabilities between $1 billion and $5 billion alongside assets ranging from $100 million to $500 million. The filing cited declining mall foot traffic and competition from brands such as Temu and Shein as contributing factors. Concurrently, liquidation sales commenced at all U.S. stores due to failure in securing a buyer; this led to permanent closure of its remaining approximately 350 U.S. outlets. However, international operations along with brand intellectual property remained unaffected by this filing—the latter continuing under Authentic Brands Group ownership. By May 1, 2025, all U.S.-based Forever 21 stores were permanently closed.

Employee relations and safety

In September 2001, the Asian Pacific American Legal Center along with the Garment Worker Center—both worker advocacy organizations—initiated legal action against Forever 21, accusing the company of breaching labor laws. They alleged that 19 subcontracted employees were compensated below the minimum wage, that recorded hours on time cards were manipulated downward, that employees who raised complaints with state authorities were terminated, and that working conditions resembled those found in sweatshops. Forever 21 refuted these claims, emphasizing its dedication to equitable labor standards and noting that none of the individuals named in the suit were directly employed by the company. The garment workers organized a nationwide boycott of Forever 21 lasting three years, a campaign 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, asserting that the allegations and associated protests had damaged both its reputation and sales figures. In response, Kimi Lee, representing one of the advocacy groups for workers, argued that the legal actions were justified based on grievances from 20 employees. Both lawsuits concluded with a settlement reached in December 2004.

In January 2012, five Forever 21 workers brought forth a class-action lawsuit claiming they were not compensated for bag checks and additional tasks performed during lunch breaks as well as time spent undergoing bag inspections. Following an investigation by the United States Department of Labor which revealed that some suppliers linked to Forever 21 had violated federal wage and record-keeping regulations, a subpoena was issued in August 2012. When Forever 21 failed to produce the requested documents, U.S. District Court Judge Margaret Morrow ordered compliance. The retailer stated it had attempted to cooperate with the Labor Department and had submitted the necessary information. 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 been involved in numerous legal battles concerning intellectual property infringement related to its design collections. In 2007, the company characterized its design methodology as proprietary, clarifying that it did not employ traditional designers but rather relied on "highly knowledgeable designer merchants," whose identities remained undisclosed. The company also stated that it collaborated with multiple suppliers and was not always aware of the original sources of those suppliers' concepts. Known for refreshing its product lineup every six to eight weeks to align with emerging fashion trends, Forever 21 was highlighted by The New York Times in 2007 for delivering runway-inspired styles within six weeks—significantly faster than designers like Marc Jacobs or Michael Kors, who typically take several months to bring collections to retail. Legal experts such as copyright scholar Susan Scafidi have expressed skepticism regarding Forever 21's design approach, suggesting it may involve copying others' creations. CEO Do Won Chang acknowledged disappointment with some merchants, noting he had "overly trusted people" regarding their design contributions.

By October 2007, the number of lawsuits against Forever 21 exceeded twenty, with notable designers and brands including Trovata, Anna Sui, Harajuku Lovers, and Diane von Fürstenberg Studio initiating legal action that month. During this period, Diane von Fürstenberg was actively advocating in Congress for expanded copyright protections covering clothing designs. However, The New York Times reported that U.S. law at the time did not safeguard clothing designs from replication (except for logos), implying that these lawsuits were unlikely to result in rulings against Forever 21. In 2007, Forever 21 was legally prohibited from copying DVF designs. The Trovata case was unique in proceeding to a jury trial; after a mistrial where the majority of jurors favored Trovata, Forever 21 opted to settle prior to a retrial in May 2009. As of 2011, no court had found Forever 21 liable, with most disputes resolved through settlements. That same year, the company issued a cease-and-desist letter to the operator of WTForever21.com—a blog known for satirical commentary on Forever 21 products—which sparked widespread online backlash and was internationally reported as an example of corporate intimidation.

In January 2015, Canadian media 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 Forever 21’s website. The two parties reached an out-of-court settlement on mutually agreeable terms by April 2015. Later that month, software companies Adobe, Autodesk, and Corel jointly filed a lawsuit against Forever 21 alleging unauthorized use of Adobe Photoshop, AutoCAD, and PaintShop Pro software respectively. Forever 21 denied these claims, accusing Adobe of aggressive tactics related to online licensing fees and asserting an "implied" license due to software bundling with other products. This dispute was resolved through settlement in March 2016. In September 2019, American singer Ariana Grande filed a $10 million lawsuit against Forever 21 for allegedly imitating her style and image by dressing models in a manner resembling her appearance in the "7 Rings" music video during their photoshoot.

Stores

Forever 21 maintains retail locations across various countries. As of 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 flagship store in Los Angeles, which retained the original brand name, operated until 2020. Internationally, the majority of Forever 21 shops function either as franchises or through joint ventures with local entities in select markets. The typical retail space for each store measures 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)