The operator company of Forever 21 obtained the brand license in the United States from Authentic Brands Group, while the latter would remain the owner of the intellectual property associated with the brand. Forever 21 is working with BRG in its restructuring process, considering various options to improve its business, including a possible second bankruptcy filing. The company is focused on finding buyers for profitable lease contracts.
In the words of a representative from Authentic Brands, various strategic options for Forever 21's operations are being explored with the aim of achieving the best possible outcome. On the other hand, BRG and Authentic Brands remain silent regarding comments on the current situation of the company.
It is noteworthy that Sparc Group, the operator of fashion brands including Forever 21, Lucky Brand, Eddie Bauer, Aeropostale, and Brooks Brothers, merged with JCPenney in January to create Catalyst Brands. Authentic Brands Group acquired the Forever 21 brand after its bankruptcy in February 2020 and subsequently licensed it to Sparc Group. According to reports from the Wall Street Journal, the company would be considering filing for bankruptcy as part of its possible future options.
