Forever 21 Inc. is emerging from bankruptcy with new owners who have a stake in keeping the company going.
A bid by SPARC Group F21 — comprised of Simon Property Group Inc., Brookfield Property Partners and Authentic Brands Group — was approved by U.S. Bankruptcy Court in Delaware.
Two of SPARC’s investors are Forever 21’s largest landlords. Simon Property Group of Indianapolis has a 50% interest in SPARC and holdings that include the Del Amo Fashion Center in Torrance. Brookfield Property Partners of Chicago owns the Glendale Galleria, among other properties. SPARC’s third investor, Authentic Brands Group, is a privately held, New York-based company that manages consumer brands.
Judge Kevin Gross on Feb. 13 ruled that SPARC’s $81 million starting bid for the Lincoln Heights-based company was “the highest and otherwise best offer” in the face of no other bids.
SPARC will acquire Forever 21’s inventory, leases and intellectual property. Control of the leases will enable Simon and Brookfield to minimize the potential snowballing effects of other tenants attempting to use Forever 21 store closures as leverage to negotiate lower rents.
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