Who owns Forever 21 after the 2025 bankruptcy?

The Forever 21 intellectual property, including the brand name and trademarks, is owned by Authentic Brands Group (ABG). The 2025 bankruptcy affected F21 OpCo LLC, the retail operating entity controlled by Catalyst Brands (formerly SPARC Group), which ran Forever 21's physical stores. ABG itself was not part of the bankruptcy filing and retains the brand's IP. All 354 U.S. stores were closed by April 30, 2025, but ABG continues to license the Forever 21 name internationally.

Is Forever 21 publicly traded?

Forever 21 is not publicly traded, and neither is its brand IP owner, Authentic Brands Group. ABG is a privately held company that has received investments from private equity firms including General Atlantic and BlackRock, but has not completed a public offering. The retail operating entity that ran Forever 21's stores was also privately held through Catalyst Brands.

When was Forever 21 founded and what happened to it?

Forever 21 was founded on April 21, 1984, by Do Won Chang and Jin Sook Chang in Highland Park, Los Angeles. The company grew from a single store to a global fast fashion empire before filing for Chapter 11 bankruptcy in September 2019. Authentic Brands Group acquired the brand's intellectual property in 2020 for approximately $81 million. The U.S. retail operating entity filed for bankruptcy a second time on March 17, 2025, and closed all 354 remaining U.S. stores by April 2025, citing competition from Shein and Temu.

Who founded Forever 21?

Forever 21 was founded by Do Won Chang and Jin Sook Chang, South Korean immigrants who arrived in the United States in 1981. Do Won Chang worked multiple jobs before saving enough to open the first store, originally named Fashion 21, in Highland Park, Los Angeles, in 1984. The Changs built the company into a global fast fashion empire over three decades before financial pressures led to the first bankruptcy in 2019.

Does Forever 21 still exist in 2026?

As of February 2026, Forever 21 no longer operates physical retail stores in the United States following the closure of all 354 U.S. locations by April 2025. The brand's intellectual property is retained by Authentic Brands Group, and Forever 21 continues to operate internationally through licensing agreements in select markets including parts of Asia, Latin America, and the Middle East. Whether ABG will pursue a U.S. relaunch in a new format, such as e-commerce or wholesale, has not been publicly announced as of February 2026.

Fashion & Apparel

Who Owns Forever 21?

Forever 21's intellectual property is owned by Authentic Brands Group (ABG), a privately held brand management company. The U.S. retail operating entity, F21 OpCo LLC (controlled by SPARC Group, now Catalyst Brands), filed for Chapter 11 bankruptcy on March 17, 2025, and liquidated all 354 U.S. stores by April 2025. ABG retains the Forever 21 trademark and continues to license the brand internationally. ABG is headquartered in New York City.

Parent Company

Authentic Brands Group

Acquired

2020

Status

Private

Headquarters

Los Angeles, California, USA (brand origin); New York City, New York, USA (ABG headquarters)

Forever 21 Timeline

1984

Forever 21

Founded by Do Won Chang, Jin Sook Chang

Founded

2020

Acquired by Authentic Brands Group

Authentic Brands Group acquired Forever 21

Acquired

budgetmass marketGlobalOfficial Website

Who Owns Forever 21?

Parent Company: Authentic Brands Group
Ownership Type: Wholly owned
Acquisition Year: 2020
Company Type: Privately Held

Brand	Parent Company	Ownership Type
Forever 21	Authentic Brands Group	Wholly owned

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Forever 21 on Amazon

History of Forever 21

Founded: 1984
Founders: Do Won Chang, Jin Sook Chang
Acquired by Authentic Brands Group: 2020

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.

About Authentic Brands Group

What does Authentic Brands Group own?
ABG owns over 50 brands including Reebok, Champion, Guess (majority stake acquired January 2026), Dockers (acquisition agreed May 2025), Forever 21, Juicy Couture, Nautica, Quiksilver, Billabong, DC Shoes, Roxy, RVCA, Element, Sports Illustrated, and entertainment licensing rights for Marilyn Monroe, Elvis Presley, and Muhammad Ali, among others.

Is Authentic Brands Group publicly traded?
No. ABG is a privately held company and has not pursued a public listing as of 2026. The company has been valued at over 20 billion dollars in private funding discussions.

Who founded Authentic Brands Group?
ABG was founded in 2007 by Jamie Salter, who serves as Chairman and CEO. Salter built the company through acquisitions of heritage consumer brands and the development of a licensing-based business model.

Where is Authentic Brands Group headquartered?
ABG is headquartered in New York City, New York.

How does Authentic Brands Group make money?
ABG earns royalties from licensees who manufacture and sell products under ABG's brand names. Licensees pay royalties calculated as a percentage of net sales. ABG does not manufacture products or hold inventory directly. The company's portfolio generates an estimated 30 billion dollars or more in annual retail sales globally.

What is ABG's most recent major acquisition?
In January 2026, ABG completed the acquisition of a majority stake in Guess, valuing the brand at approximately 1.4 billion dollars. In May 2025, Levi Strauss agreed to sell the Dockers brand to ABG for 311 million dollars. In 2024, ABG acquired Champion from Hanesbrands for approximately 1.2 billion dollars.

Did Forever 21 go bankrupt again?
Yes. In 2025, Forever 21 filed for Chapter 11 bankruptcy again and announced plans to close all U.S. stores. The brand was acquired by ABG, Simon Property Group, and Brookfield from bankruptcy in 2020 but continued to face headwinds from fast fashion competition and changing consumer preferences.

Founded: 2007
Headquarters: New York City, New York, United States
Company Type: Privately Held
Revenue: Estimated 700 million dollars+ (FY2024, licensing revenue)
Employees: Approximately 3,000

Visit Authentic Brands Group website

View full company profile for Authentic Brands Group

Where Is Forever 21 Made / Based?

Headquarters: Los Angeles, California, USA (brand origin); New York City, New York, USA (ABG headquarters)

Forever 21 Categories & Tags

Fast Fashion Apparel Retail Youth Fashion Brand Licensing

Forever 21 Sustainability & Ethics

Forever 21 operates as a fast fashion brand with limited sustainability initiatives and significant environmental challenges. Following the 2025 bankruptcy and liquidation of U.S. operations, the brand's sustainability efforts remain minimal under Authentic Brands Group's ownership, with the company lacking comprehensive environmental programs or transparent reporting.

Materials and Environmental Impact: Forever 21 predominantly uses high-impact synthetic fibers including rayon, nylon, spandex, and polyester, which are fossil-fuel based materials with significant carbon footprints. The brand has not implemented meaningful initiatives to incorporate sustainable materials or reduce its reliance on environmentally damaging fabrics. There is no evidence of programs to increase recycled content or transition to lower-impact materials.

Energy and Store Operations: Forever 21 has expressed a goal to include more energy-efficient lighting in its stores but provides no specific targets, progress reports, or implementation timelines. The company does not publicly report on renewable energy usage or energy consumption reduction efforts. There is no available information on emissions tracking or carbon footprint reduction initiatives.

Supply Chain Transparency: Forever 21 does not publish information about its supply chain partners or manufacturing locations. The company maintains a supplier code of conduct that restricts subcontracting and prohibits forced labor, but it does not include provisions for living wages or cover comprehensive worker rights. There is no public information about audit outcomes or supply chain monitoring effectiveness.

Waste and Circular Economy: Forever 21 does not offer repair services, take-back programs, or initiatives to keep garments out of landfills. As a fast fashion brand with frequent new releases, the company encourages overconsumption and does not address the environmental cost of rapid fashion cycles. There are no reported programs for textile recycling, material circularity, or waste reduction.

Transparency and Reporting: Forever 21 does not maintain a sustainability page or publish sustainability reports. The company lacks public emissions tracking, reduction targets, or environmental performance metrics. This lack of transparency is particularly concerning given the brand's historical scale and environmental impact as a major fast fashion retailer.

Labor Practices: While Forever 21's supplier code of conduct addresses basic labor rights, it does not ensure living wages or comprehensive worker protections. The company does not publicly report on labor conditions, wage levels, or worker welfare initiatives in its supply chain. The 2025 U.S. liquidation resulted in significant job losses without reported transition programs for affected workers.

Marketing and Consumer Impact: Forever 21's marketing does not acknowledge the environmental cost of fashion and actively encourages overconsumption through frequent new releases and promotional strategies. The company's business model remains fundamentally at odds with sustainable fashion principles and environmental responsibility.

Awards & Recognition

No independently verified awards or recognitions specific to Forever 21 have been documented as of 2025. The brand's previous awards sections contained placeholder entries that could not be verified against independent awarding organizations. Forever 21 was included in Forbes' list of America's Largest Private Companies prior to its 2019 bankruptcy, when it was ranked at approximately $4 billion in annual revenue. This listing was based on revenue data and was not an award.

Forever 21 Recalls & Controversies

Chapter 11 Bankruptcy (2019): Forever 21 filed for Chapter 11 bankruptcy protection on September 29, 2019, listing liabilities of between $1 billion and $10 billion. The filing announced the closure of approximately 350 stores globally and the exit from 40 countries. The bankruptcy was caused by overexpansion, declining mall traffic, and competition from e-commerce. The brand was acquired out of bankruptcy by Authentic Brands Group, Simon Property Group, and Brookfield Property Partners for approximately $81 million in February 2020.

Second Chapter 11 Bankruptcy and U.S. Liquidation (2025): F21 OpCo LLC, the retail operating entity controlled by Catalyst Brands, filed for Chapter 11 bankruptcy on March 17, 2025. The filing cited competition from Shein and Temu, declining mall traffic, and rising operational costs. The company reported losses of $150 million in 2024 and projected losses of approximately $180 million through 2025. All 354 U.S. stores were closed and liquidated by April 30, 2025. ABG CEO Jamie Salter publicly stated that acquiring Forever 21 was "probably the biggest mistake I've made."

Labor and Supply Chain Controversies: Forever 21 has faced criticism for labor practices in its supply chain. In 2012, the U.S. Department of Labor investigated Forever 21 suppliers in Los Angeles for wage theft and unsafe working conditions. The company was not directly fined but was named in investigations of its contractors. Forever 21's supplier code of conduct prohibits forced labor and restricts subcontracting but does not require living wages or comprehensive worker protections.

Cultural Appropriation Allegations: Forever 21 has faced multiple accusations of cultural appropriation. In 2019, the brand was criticized for selling a traditional Korean hanbok-style dress marketed as a Halloween costume. The product was removed following backlash. Similar controversies occurred in 2017 when the brand was criticized for using a model wearing a traditional Native American headdress in a promotional campaign.

Design Theft Allegations: Forever 21 has faced multiple lawsuits alleging design theft from independent designers and larger brands. In 2019, designer Laquan Smith accused the brand of copying his designs. These lawsuits are common in the fast fashion industry and have typically been settled or dismissed without major financial impact.

Environmental Impact: Forever 21 has been criticized by environmental organizations including Greenpeace and the Clean Clothes Campaign for its contribution to textile waste and the environmental impact of fast fashion. The brand does not publish sustainability reports, does not offer clothing recycling programs, and does not set targets for reducing its environmental footprint. The company predominantly uses synthetic fabrics including polyester, nylon, and spandex, which are derived from fossil fuels.

Plus-Size Pricing Controversy: Forever 21 faced criticism for charging more for plus-size clothing than for equivalent straight-size items. The pricing disparity was documented by consumers and media outlets. The company did not publicly address the pricing difference, which critics argued penalized plus-size customers.

Forever 21 Ownership: Pros & Cons

Advantages

+ABG retains the Forever 21 trademark and intellectual property, enabling potential brand relaunches in new formats (e-commerce, wholesale, international licensing) without the fixed-cost burden of physical retail
+International licensing operations in Asia, Latin America, and the Middle East continue to generate royalty revenue for ABG, demonstrating that the brand retains commercial value in markets less affected by Shein and Temu competition
+ABG's brand management expertise and portfolio scale provide resources for potential brand rehabilitation strategies, including collaborations, limited-edition releases, or digital-first retail models
+The brand's strong recognition among millennial and Gen Z consumers who grew up shopping at Forever 21 stores provides a foundation for nostalgia-driven marketing if ABG pursues a relaunch

Considerations

-The second U.S. bankruptcy in six years and the closure of all 354 U.S. stores has severely damaged the Forever 21 brand's credibility as a going retail concern, making any U.S. relaunch a significant challenge requiring substantial investment and a differentiated strategy
-Ultra-fast fashion competition from Shein and Temu has structurally disrupted the price-to-value equation that Forever 21 was built on, and there is no clear path to competing with platforms that can offer comparable or lower prices with faster trend cycles
-ABG CEO Jamie Salter's public acknowledgment that the Forever 21 acquisition was a mistake signals limited internal enthusiasm for major new investment in the brand, raising questions about the depth of ABG's commitment to a U.S. relaunch
-The fast fashion business model faces growing regulatory and consumer pressure related to environmental sustainability and labor practices, creating additional headwinds for any brand attempting to compete on low prices and high volume

Frequently Asked Questions About Forever 21

Sources & Further Reading

Competitors to Forever 21

These competing brands operate in the same categories and provide similar products or services. Compare key attributes to understand market positioning and competitive landscape.

Brand	Parent Company	Country	Founded	Market Position	Primary Market	Gender Target
American Apparel	Gildan Activewear	USA	1989	Mass market	United states	Unisex
Foot Locker	Dicks Sporting Goods	USA	1974	Premium	United states	All Genders
H&M	H M	Sweden	1947	Mass market	Global	Unisex
SHEIN	Shein	Singapore	2012	Mass market	Global	All-consumers
Zara	Inditex	Spain	1975	Mass market	Global	Unisex