ABG and Simon Property Group will own 37.5% and Brookfield Property Partners 25% of the property of the casual clothing company.
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This story originally appeared on High Level
The company Authentic Brands Group (ABG) announced the acquisition of Forever 21 , fashion retailer, which will have the operational responsibility for the rescue of the firm with a refinancing of liabilities.
The purchase, for 81 million dollars (mdd), was achieved after the court accepted the bailout offer, while the option to liquidate the business was displaced.
ABG and Simon Property Group will own 37.5% and Brookfield Property Partners 25% of the property of the casual clothing company. At the end of last August the preparation to declare bankruptcy was announced, after being in talks to obtain additional financing, and in September it was announced that it would cease to function in 40 countries.
“Forever 21 is a powerful retail brand with incredible reach for the consumer and untapped potential,” said Jamie Salter , founder, president and CEO of ABG, who added that the work plan is aimed at revitalizing the business of the brand and connect audiences through new product offerings and experiences.
Founded in Los Angeles, California in 1984 by the marriage of Do Won de Chang and Jin Sook Chang, the project began under the name of Forever Fashion. The first store opened at 5637 N. Figueroa St. in the Highland Park neighborhood.
According to a press release, the acquisition “diversifies” ABG's vertical retail and electronic commerce experience and “increases the value of its brand portfolio to 12.5 billion in global annual sales .”
ABG, which participated in the restructuring of Bombay Company and Polaroid Corporation , has said it will leverage its experience in marketing and its global network of partners to implement a strategy focused on “attracting the Generation Z public through the introduction of creative digital campaigns” . In addition, it will oversee the continued operation of its headquarters in Los Angeles, California, and maintain the e-commerce business.