Owned by Simon Property Group (SPG +1.43%) and Authentic Brands Group, Forever 21 is a fast-fashion retailer that sells apparel, beauty products, and accessories. Their target customer base is primarily young women, but it sells products for women, men, and children, and shoppers across age ranges buy from its stores and online. However, times have changed, and Forever 21 has thrown in the maxi dress and will be closing its doors forever.
NYSE: SPG
Key Data Points
Fast Fashion
Who is the owner of Forever 21?
Forever 21 is a private company. So, unlike some retail brands, it doesn't have publicly traded stock for individuals to invest in.
In February 2020, the news hit that Forever 21 was being bought out of bankruptcy by the largest mall operators in the U.S. and a major brand management firm. The company was acquired by Simon Property Group, Brookfield Properties, and Authentic Brands Group.
Simon Property Group and Authentic Brands Group each acquired a stake of 37.5% in Forever 21, with Brookfield Properties holding the remaining 25%. A joint venture between Simon Property Group and Authentic Brands Group, called SPARC Group LLC, then took the reins of Forever 21's management and appointed a new CEO.
The venture also worked on expanding Forever 21's global presence through various licensing deals and international re-expansions in markets like the U.K. and E.U. It closed some stores (as many retailers did) when the COVID-19 pandemic struck. The years that have followed have involved numerous additional shifts in the company's licensing initiatives, brand expansion, and ownership.
In 2021, Brookfield sold its stake in Forever 21 for $63 million, leaving the company in the hands of Simon Property Group and Authentic Brands Group. That same year, Forever 21 also partnered with Canadian department store chain Hudson's Bay and relaunched its products on Chinese e-commerce sites Vip.com, owned by Vipshop Holdings (VIPS -8.29%); and Pinduoduo, owned by PDD Holdings (PDD -0.65%).
Subsequent collaborations have included partnerships with French fashion house Hervé Léger and Sports Illustrated, both of which have Authentic Brands Group as their parent company.
In 2023, fast-fashion giant Shein, a privately held company owned by investors and founder Sky Xu, entered into a joint venture with SPARC Group. Each acquired a minority stake in the other company. Shein currently controls a roughly one-third stake in SPARC Group.
Law of Supply and Demand
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Alternative Investments
While Forever 21 may have gone the way of the dodo, that doesn't mean that the fast-fashion industry is an investing write-off. There are some other options to consider. Here are a few examples:
- Industria de Diseno Textil Inditex (OTCMKTS:IDEXY): The owner of brands like Zara, Pull & Bear, Massimo Dutti, and Bershka controls a significant slice of the global fast-fashion market. One of its most well-known brands, Zara, controls a sizeable chunk of the fast-fashion market in the U.S. alone. The Inditex Group brought in about 38.6 billion euros (about $44.7 billion) in total sales in 2024.
- American Eagle Outfitters (NYSE:AEO): The clothing and accessories retailer is known for its clothes targeting Gen Z and young adult shoppers. Total revenue in the company's fiscal 2024 rose 4% year over year.
- Hennes Mauritz: The Swedish company is known for its eponymous brand, H&M, as well as brands like COS and Weekday. It reported revenue of approximately 339 billion Swedish krona (about $35 billion) in its last fiscal year..
Although you can't buy Forever 21 stock, you can invest in one of its owners, like Simon Property Group, or in a publicly traded rival. This can help you gain exposure to fast-fashion trends as you build out your investment portfolio.
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