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Friday, Mar 31, 2023

Forever 21, JCPenney Team Up for Post-Bankruptcy Campaign

In addition to some 540 of its own brick-and-mortar shops, F21 OpCo., which does business as Forever 21, has started selling apparel and accessories at Penney OpCo.’s (doing business as JCPenney) 100 department stores.
The collaboration, which kicked off last week, is supported via a marketing campaign encompassing in-store, ecommerce, social media and direct mail promotions.
The move comes nearly two years after the Lincoln Heights-based company emerged from Chapter 11 bankruptcy.

New Jersey-based SPARC Group — owned by Indianapolis-based Simon Property Group Inc. and New York-based Authentic Brands Group — teamed up with Glendale Galleria owner Brookfield Property Partners in February 2020 and put up a stalking horse bid to acquire Forever 21’s assets for $81 million. The chain at the time operated 790 stores, including more than two dozen in Los Angeles County.
Brookfield has since sold off its interest in Forever 21, netting about $63 million, according to documents filed with the Securities and Exchange Commission.
JCPenney also emerged from bankruptcy last year, selling its assets to Simon Property Group and Brookfield for roughly $800 million.

“Forever 21’s relationship with the Generation Z customer is a perfect alignment for JCPenney, who is also committed to bringing innovation, excitement and fashion to a young consumer that understands the quickly evolving trends in fashion,” Authentic Brands Group’s Chief Brand Officer Jarrod Weber said in a statement. “We are particularly pleased to bring both companies together for the launch of this creative brand and marketing opportunity.”

Authentic Brands, which also owns jeans and apparel company Lucky Brand, based in downtown, in November sold significant equity stakes to funds advised by CVC Capital Partners and HPS Investment Partners. The transaction put Authentic Brands’ enterprise value at $12.7 billion.

South Korean immigrants, Do Won and Jin Sook Chang founded Forever 21 in 1984 with $11,000 in savings. Their first clothing store, located in downtown’s Garment District, was called Fashion 21.

Mediha DiMartino
Mediha DiMartino
Mediha DiMartino covers retail, manufacturing and the ports. She can be emailed here.

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