Who Owns Forever 21?

Forever 21 was founded on April 21, 1984, by Do Won Chang and Jin Sook Chang, South Korean immigrants who had arrived in the United States in 1981. Do Won Chang had worked three jobs simultaneously after arriving in America, including as a gas station attendant, janitor, and coffee shop worker, before saving enough capital to open a clothing store. The first store, originally named Fashion 21, opened in Highland Park, Los Angeles, with approximately 900 square feet of retail space and generated $700,000 in sales in its first year.

The Changs' business model was built on offering trendy, fashion-forward clothing at prices significantly below department store and specialty retailer competitors. The concept resonated strongly with young, budget-conscious consumers, and the company expanded rapidly through the 1980s and 1990s. The brand was renamed Forever 21 to reflect the founders' belief in the timeless appeal of youth and aspiration. By the early 2000s, Forever 21 had grown from a single Los Angeles store to a national chain with hundreds of locations, including large-format stores of 30,000 to 90,000 square feet in major shopping malls across the United States.

The company's growth accelerated through the 2000s as the fast fashion model gained mainstream acceptance. Forever 21 became known for its ability to move from runway trend to store shelf in weeks rather than months, offering an enormous selection of styles at prices typically ranging from $5 to $30. At its peak, Forever 21 operated more than 800 stores globally, including locations in Europe, Asia, and Latin America, generating annual revenues estimated at approximately $4 billion. The brand was particularly dominant in American shopping malls, where its large-format stores became anchor tenants.

The company's decline began in the mid-2010s as the retail landscape shifted dramatically. The rise of e-commerce, particularly Amazon and direct-to-consumer brands, eroded foot traffic to physical malls. Simultaneously, the emergence of ultra-fast fashion platforms, initially from China-based manufacturers and later from Shein and Temu, undercut Forever 21's price positioning with even lower costs and faster trend cycles. Forever 21 had also overexpanded, signing long-term leases on large retail spaces that became financial burdens as sales declined.

On September 29, 2019, Forever 21 filed for Chapter 11 bankruptcy protection, announcing the closure of approximately 350 stores globally and the exit from 40 countries. The filing listed liabilities of between $1 billion and $10 billion. In February 2020, Authentic Brands Group, Simon Property Group, and Brookfield Property Partners acquired the Forever 21 brand assets for approximately $81 million, with the intent of preserving the brand through a licensing model while reducing the fixed-cost burden of direct retail operations.

Under ABG's ownership, the brand was operated by SPARC Group (later Catalyst Brands) through a reduced store footprint of approximately 540 U.S. locations, supplemented by e-commerce. However, the operating entity continued to struggle against the same competitive forces that had driven the original bankruptcy. In March 2025, F21 OpCo LLC filed for Chapter 11 for the second time, blaming Shein and Temu directly in its bankruptcy filing. The company lost $150 million in 2024 and projected losses of approximately $180 million through 2025. All 354 remaining U.S. stores were closed by April 30, 2025. ABG retains the brand's intellectual property and has indicated it will continue to license the Forever 21 name internationally, though the brand's future in the U.S. market remains undefined as of February 2026.