XXI Forever
 Logo used until 2019 | |
| Company type | Private |
|---|---|
| Industry | Retail (fast fashion) |
| Founded | April 16, 1984 in Highland Park, Los Angeles, United States |
| Founder | Do Won Chang and Jin Sook Chang |
| Fate | Filed for Chapter 11 bankruptcy in 2019; U.S. operations ceased; intellectual property acquired by Authentic Brands Group |
| Headquarters | Los Angeles , United States |
Area served | Worldwide (limited international operations after U.S. store closures) |
Key people | Winnie Park (former CEO), Daniel Kulle (CEO under SPARC) |
| Products | Apparel for women, men, and children; accessories; beauty products; home merchandise |
Number of employees | 43,000 (2019) |
| Parent | SPARC (Simon Property Group and Authentic Brands Group joint venture) |
Overview
F21 OpCo LLC, operating under the brand name Forever 21, was a global player in the fast-fashion sector. 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 maintained approximately 540 retail locations. Presently, its intellectual property rights are held by Authentic Brands Group.
The retailer specialized in offering a diverse range of products including apparel for women, men, and children, as well as accessories, beauty items, and home merchandise. Despite its widespread presence, Forever 21 faced several controversies over the years, involving allegations related to labor practices and intellectual property violations. While U.S. stores have closed, the brand continues to operate in Mexico and other international markets.
Founded by Do Won Chang and Jin Sook Chang, Forever 21 was recognized for making contemporary fashion trends widely accessible while encouraging individual style and confidence. As of 2019, the company employed around 43,000 individuals worldwide and maintained a network of about 190 outlets following the shutdown of its U.S. stores. Winnie Park served as CEO during its later years.
History
1984–2017: inception and growth
Initially operating under the name Fashion 21, the retailer was established in Los Angeles on April 16, 1984, by South Korean immigrant couple Do Won Chang and Jin Sook Chang.[1] The first store occupied approximately 900 square feet (84 m2) at 5637 N. Figueroa Street in Los Angeles' Highland Park neighborhood.[2] With an initial investment of $11,000 from personal savings,[2] the store catered primarily to the local Korean American community by offering fashion styles reminiscent of those popular in South Korea. Inventory was sourced through wholesale closeouts from manufacturers.[2] The business recorded sales of around $700,000 within its inaugural year.[3] Subsequently, the founders rebranded Fashion 21 as Forever 21 and shifted the model toward fast fashion, focusing on trendy apparel offered at affordable prices.[4] During its first decade, the company expanded rapidly, opening new locations approximately every six months, mainly within shopping malls.[5]
In 2005, Forever 21 acquired the retailer Gadzooks for $33 million,[6][5] and over the following two years, doubled its store count to about 400. Industry analysts projected revenue growth from $640 million in 2005 to $1 billion by 2006.[5] Unlike many competitors targeting solely teenagers, Forever 21 aimed to serve entire families and operated considerably larger stores averaging around 25,000 square feet. The company unveiled a flagship location spanning 40,000 square feet in Pasadena, California, in 2006 that featured apparel for women, men, and children alongside accessories and lingerie. Additionally, Forever 21 maintained an e-commerce platform and operated standalone For Love accessory outlets.[7] By 2007, retail space had increased by nearly one-third. An April 2008 Chicago Tribune article noted that while numerous retailers were curbing expansion due to economic conditions, Forever 21 was aggressively growing, having doubled its global store count to roughly 400 within three years.[4]
By 2011, the company's assets reached $1.4 billion with profits totaling $124 million.[8] That year also brought several controversies. The Center for Environmental Health identified Forever 21 among twenty-six retailers selling jewelry containing hazardous cadmium.[7] This resulted in a settlement requiring a payment of $1.03 million and limiting cadmium content to no more than 0.03%.[7] In addition, some women's shirts faced online backlash for perceived anti-education and sexist messages—examples included slogans like "Allergic to Algebra," "Skool sucks," and a shirt stating "I heart school" on the front with "not ..." on the back.[9] Forever 21 responded by removing the "Allergic to Algebra" shirt from its website and clarified that it did not intend to disparage education.[9][10] In April 2010, customer Rachel Kane launched a blog titled WTForever21.com,[11] where she shared photographs of Forever 21 products alongside her critiques.[11] The blog gained attention after coverage on the Jezebel website; however, in June 2011, Forever 21 requested its removal under threat of legal action.[11] Later, in September 2012, a class action lawsuit was filed against Forever 21 following a customer receiving one cent less than the original purchase price during a refund.[12] Media reports indicated that for damages to reach the $15,000 threshold necessary for proceeding with the lawsuit, approximately 750,000 additional customers would need to join.[12] Forever 21 declined to comment due to ongoing litigation.[13]
By the year 2013, Forever 21 operated over 480 stores globally and generated revenue of $3.7 billion.[3] Between 2005 and 2015, international store presence expanded dramatically from seven locations to over two hundred sixty.[14] Remaining family-owned—with Linda Chang serving as executive vice president,Cite error: The opening <ref> tag is malformed or has a bad name and Esther Chang as vice president of merchandising,[14]—the brand's worldwide sales peaked at $4.4 billion in 2015.[2] Continuing global expansion included maintaining thirty-one stores across Brazil by 2016,Cite error: The opening <ref> tag is malformed or has a bad name despite recent withdrawal from markets such as SpainCite error: The opening <ref> tag is malformed or has a bad name and Belgium.[15] In addition to retail outlets, Forever 21 launched the beauty-focused chain Riley Rose in 2017,[14] and opened its twenty-first Indian location later that year.Cite error: The opening <ref> tag is malformed or has a bad name However, revenue declined notably to $3.4 billion by the end of that year.Cite error: The opening <ref> tag is malformed or has a bad name
2018–2019: Market Challenges and Bankruptcy Proceedings
Confronted with rising rivalry from other fast fashion retailers, the company began reducing its store footprint in 2018 amidst what was widely referred to as a retail apocalypse. The brand exited the Dutch market in January 2018, followed by a withdrawal from Thailand in June of the same year, and subsequently left Ireland by the end of 2018. On March 31, 2019, Forever 21 also ceased operations in Taiwan. In July 2019, the company faced allegations of fat shaming after including weight-loss bars with orders containing plus-sized apparel; the brand issued an apology, describing the inclusion as an "oversight."
The surge of global fast fashion competitors, combined with reputational harm from labor rights advocates and environmental groups, high rental expenses at prime locations, and intensified online retail competition, triggered a significant downturn in the company’s worldwide activities. In 2019, global sales declined by 32%. According to Women's Wear Daily, the bankruptcy was partly attributed to overexpansion with an excessive number of 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 strategy, the firm announced it would halt operations in 40 countries and close a portion of its approximately 600 stores—particularly those located in Asia and Europe—to concentrate on its profitable core operations within the U.S. and Latin America. Additionally, efforts were made to strengthen e-commerce platforms and licensing partnerships.
Throughout the following year, Forever 21 withdrew from several markets including Hong Kong, Portugal, Japan, and Canada. The company also shut down both its physical outlets and online presence in the United Kingdom.
2020–present: Ownership under SPARC
By the beginning of 2020, Forever 21 had reduced its international footprint by closing 350 out of 815 stores worldwide, a move overseen by then-president Alex Ok. In that same month, the brand relaunched its e-commerce platform across 30 countries via the online retailer 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 comprising Simon Property Group, Brookfield Properties, and Authentic Brands Group (ABG). Ownership of the company's intellectual property and operations was split with ABG and Simon each holding 37.5%, while Brookfield acquired a 25% stake. Following the acquisition, SPARC—a joint venture between Simon Property Group and Authentic Brands Group—assumed management responsibilities and appointed Daniel Kulle as the new CEO. Under Kulle’s leadership, Forever 21 initiated expansion efforts in Latin America through licensing agreements. The company temporarily shuttered its stores in March 2020 due to the COVID-19 pandemic.
In June 2020, ABG designated IB Group as the licensee for Forever 21 in Mexico. That same month marked the brand’s return to the UK and EU markets with new online storefronts catering to British consumers. Later in October, a licensing partnership was established with AR Holdings to introduce Forever 21 into nine Latin American countries. Early in 2020, the retailer withdrew from several markets including Guam, South Africa, and Lebanon.
Brookfield Property Partners divested its ownership interest in Forever 21 for $63 million in May 2021. The following month, YM Inc. secured Canadian licensing rights for the brand, leading to a collaboration announcement between Hudson's Bay and Forever 21 within Canada. In August 2021, Forever 21 appointed Lasonic Limited Xusheng Co. Ltd. to oversee its operations in China; concurrently, it reentered prominent e-commerce platforms such as Vip.com and Pinduoduo. By December of that year, Forever 21 operated approximately 540 locations globally and partnered with JCPenney—also under ABG ownership—for product collaborations. Additionally, the company engaged Virtual Brand Group to develop a metaverse game enabling users to manage custom virtual fashion stores.
Winnie Park was named CEO of Forever 21 in January 2022. That year, Authentic Brands Group initiated legal action against Bolt Financial in New York, alleging failure to deliver promised technology that resulted in $150 million in lost online sales due to a flawed rollout of a new e-commerce platform launched in 2021. ABG characterized Bolt’s software integration with Forever 21’s mobile application as highly problematic with multiple technical glitches disrupting transactions; Bolt denied these allegations.
In 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 license by Aditya Birla Fashion and Retail. In June 2022, Poetic Brands was granted licensing rights to manufacture, market, and distribute Forever 21 products across the United Kingdom and European markets.
In August 2023, Shein and SPARC Group formed a joint venture where each acquired minority stakes in the other; notably, Shein obtained approximately one-third ownership of SPARC Group.
By February 2025, reports indicated that Forever 21 was consulting with restructuring firm BRG to explore various strategic options including selling profitable leases as a measure to avoid another bankruptcy filing. Later that month, it was announced that the company planned to close around 215 underperforming stores by April due to sustained unprofitability.
On March 3, 2025, Forever 21 laid off nearly 700 employees across California and Pennsylvania while also announcing plans to close its Los Angeles headquarters. The company warned that it might file for Chapter 11 bankruptcy protection imminently after ongoing difficulties securing buyers for its retail locations. Subsequently, on March 17, 2025, Forever 21 filed for Chapter 11 bankruptcy in Delaware for the second time within six years. The filing disclosed liabilities ranging from $1 billion to $5 billion against assets between $100 million and $500 million. Declining mall traffic along with competition from retailers such as Temu and Shein were cited as contributing factors. On the same day, liquidation sales commenced at all U.S.-based stores due to failure in securing a buyer; this led to permanent closure of the remaining approximately 350 U.S. outlets. However, international operations along with intellectual property rights—owned by Authentic Brands Group—remained unaffected by this filing. By May 1, 2025, all U.S.-based Forever 21 locations had ceased operations permanently.
Employee relations and safety
In September 2001, workers' advocacy organizations, including the Asian Pacific American Legal Center and the Garment Worker Center, initiated legal action against Forever 21, accusing the company of labor law violations. They alleged that 19 contracted workers were paid below minimum wage, that recorded working hours on time cards were reduced, employees who raised complaints with 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 stating that "none of the workers named in the suit were directly employed by the company." The garment workers organized a nationwide boycott of Forever 21 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, after which Forever 21 filed a defamation lawsuit in 2002, citing damage to its reputation and sales caused by the allegations and protests. Kimi Lee, representing one of the advocacy groups involved, asserted that the legal actions were supported by grievances from 20 workers. Both lawsuits concluded with a settlement in December 2004.
In January 2012, a class-action lawsuit was brought forward by five Forever 21 employees claiming unpaid wages for bag checks and additional work performed during lunch breaks and bag inspections. Following an investigation by the Labor Department, it was found that some suppliers associated with Forever 21 had breached federal wage and record-keeping regulations, leading to a subpoena 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 supplied requested 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," citing violations noted since 2010.
Licensing disputes
The company has encountered multiple legal challenges concerning intellectual property infringement related to its design portfolio. In 2007, Forever 21 characterized its design methodology as proprietary, clarifying that it did not employ traditional designers but rather "highly skilled designer merchants" whose identities were kept confidential. The firm also stated it collaborated with numerous suppliers and was not always aware of the original sources of their concepts. Known for rapidly updating its inventory 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, a significantly shorter timeframe compared to designers like Marc Jacobs or Michael Kors, who typically take several months to bring collections to retail. Nonetheless, experts such as copyright law specialist Susan Scafidi raised concerns in 2011 about the company's design practices, suggesting they closely imitate other designers' work. CEO Chang admitted some disappointment with certain merchants after placing excessive trust in their designs.
By October 2007, the number of lawsuits against Forever 21 exceeded twenty, with complaints filed that month by Trovata, Anna Sui, Harajuku Lovers, and Diane von Fürstenberg Studio. During this period, Diane von Fürstenberg was actively advocating for legislative changes in the United States Congress to extend copyright protections to clothing designs. However, The New York Times noted that existing U.S. law at that time did not safeguard clothing designs from replication—except for logos—making successful legal outcomes against Forever 21 unlikely. In 2007, a court permanently prohibited Forever 21 from copying DVF designs. The Trovata lawsuit was unique in proceeding to a jury trial; after a mistrial where the jury was split five to one favoring Trovata, Forever 21 opted to settle prior to a retrial in May 2009. Up until 2011, Forever 21 had not been found liable in court, with most disputes resolved through settlements. That same year, the company issued a cease-and-desist notice to the operator of WTForever21.com—a blog known for satirical commentary on Forever 21’s products—an action that sparked widespread backlash online and was reported internationally 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 sweater designs originally created by their designer and selling them on Forever 21’s website. The dispute was amicably settled out of court by April 2015. Later that month, software companies Adobe, Autodesk, and Corel collectively filed a lawsuit against Forever 21 alleging unauthorized use of their products: Adobe Photoshop, AutoCAD, and PaintShop Pro respectively. Forever 21 denied these claims, accusing Adobe of aggressive licensing enforcement and asserting an "implied" license due to software bundling with other products. The parties reached a 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 likeness by dressing models in outfits resembling those featured in her "7 Rings" music video during their photo shoot.
Stores
Forever 21 maintains retail locations across various nations. As of May 2022, the company managed more than 600 outlets worldwide. By July 2022, it operated 407 stores within the United States, spanning 43 states, with the greatest concentrations found in California, Texas, Florida, New York, Georgia, New Jersey, Pennsylvania, and Illinois. The chain's inaugural store in Los Angeles continued its operations under the original name until 2020. Internationally, the majority of Forever 21 stores function as franchises or are run through joint ventures alongside local partners in select markets. The typical retail space for each store measures approximately 38,000 square feet.
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