Forever 21 is a multinational fast-fashion retailer headquartered in Los Angeles, California , United States. Originally founded as the store Fashion 21 in Highland Park , Los Angeles in 1984, it is currently operated by Authentic Brands Group and Simon Property Group , with about 540 outlets.
58-574: The company sells accessories , beauty products , home goods, and clothing for women, men and children. The company has been involved in various controversies that include labor practice issues and copyright infringement accusations. Originally known as Fashion 21, the store was founded in Los Angeles on April 16, 1984, by Do Won Chang and Jin Sook Chang, married immigrants from South Korea. The original 900 square feet (84 m) store
116-646: A metaverse game for the company that allowed players to operate custom fashion stores. Winnie Park was appointed Forever 21's chief executive officer in January 2022. ABG sued Bolt Financial in New York for failure to "deliver promised technology", stating that Forever 21 had lost $ 150 million in online sales due to a botched rollout of a new e-commerce platform in 2021. ABG described Bolt's software integration with Forever 21's mobile app as "disastrous," with multiple technical issues interfering in purchases. Bolt argued
174-732: A certain room or place. Macy's , American Eagle , Nike and Sephora were reported to be implementing various technologies to integrate digital experiences to improve consumers' physical shopping experiences. Sephora has installed smart mirrors that use augmented reality to allow customers to try on makeup. Walmart automated some aspects of its supply chain. Kohl's reduced the size of some stores from 90,000 to between 60,000 and 35,000 square feet and uses robots to help clean and stock shelves. Lowe's has been using LowesBot to help customers find items. Company executives have said robots lower costs and improve efficiency, but employees report they don't like working with robots. A 2018 study from
232-488: A contributing factor. In Victorian fashion accessories such as fans, parasols and gloves held significance for how women experienced gender, race, and class. In this era, there was a trend for women to adopt, or aspire to, a more leisurely lifestyle. Consequently, gloves were often used by women to cover their hands and mask any signs of labour. One fashion accessory commonly worn by women in Victorian England
290-652: A designer like Marc Jacobs or Michael Kors several months to get clothes into stores after their debut on the runways, Forever 21 delivers interpretations of the same looks within six weeks." Critics such as Susan Scafidi , an expert in copyright law in 2011, question Forever 21's design process and argue that it is replicating the designs of others. CEO Chang said that some of their merchants had disappointed him after he had "overly trusted people" on their designs. By October 2007, lawsuits numbered over 20, with Trovata, Anna Sui , Harajuku Lovers and Diane von Fürstenberg Studio all filing suits against Forever 21 that month. At
348-616: A joint venture between Simon Property Group and Authentic Brands Group, took over Forever 21's management after the sale and appointed Daniel Kulle as Forever 21's new CEO. and immediately began expanding Forever 21 in Latin America via licensing deals. The company closed its stores through March 2020 in response to the coronavirus pandemic . ABG appointed IB Group as Forever 21's licensee in Mexico in June 2020. That month, it also re-entered
406-571: A joint venture where each company acquired a minority stake of the other; Shein acquired about a third of SPARC Group. In September 2001, the Asian Pacific American Legal Center and the Garment Worker Center, workers’ advocacy groups, filed a lawsuit against Forever 21, charging them of violating labor practice laws. They claimed that 19 contracted employees received less than the minimum wage, that
464-511: A number of intellectual property lawsuits for its designs. In response, in 2007, Forever 21 described its design process as proprietary, noting it employed no designers, only "very savvy designer merchants" who were not disclosed, and that it worked with "many" suppliers and did not always know where those suppliers' ideas originated. Forever 21 is known for completely changing merchandise every six to eight weeks to account for new fashion trends. The New York Times noted in 2007 that "while it takes
522-612: A partnership with Forever 21 in Canada. In August 2021, Forever 21 authorized Lasonic Limited Xusheng Co. Ltd. to manage its operations in China. Women's Wear Daily reported that Forever 21 had also "reentered major e-commerce platforms like Vip.com and Pinduoduo ." It had 540 locations by December 2021 and, that month, partnered on product lines with JCPenney , which is also owned by Authentic Brands Group. In December 2021, Forever 21 announced that it had hired Virtual Brand Group to create
580-533: A popular blog which posted humorous opinions of the company's products. The letter "incensed online communities and was reported internationally as an example of intimidation by big business". On 8 January 2015, Canadian media reported on a local, family-owned business in Richmond, British Columbia , Granted Clothing, whose designer noticed that their sweater designs had been stolen and mass-produced for sale on Forever 21's website. In April 2015, both parties resolved
638-463: A scene with personal relevance to the wearer. Retail apocalypse Retail apocalypse refers to the closing of numerous brick-and-mortar retail stores, especially those of large chains, beginning around 2010 and accelerating due to the mandatory closures during the COVID-19 pandemic . In 2017 alone, more than 12,000 physical stores closed. The reasons included debt and bankruptcy in
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#1732790950967696-788: A subpoena was ordered in August 2012. U.S. District Court Judge Margaret Morrow ordered Forever 21's compliance after the retailer failed to provide the documents. The retailer claimed that it tried to meet with the Labor Department and that it had provided the requested information. In July 2014, the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) recommended fines in excess of $ 100,000 for three different retail locations in Northern New Jersey and Manhattan for "serious safety hazards" for which they had been cited since 2010. The company has faced
754-438: A toxic metal. That September, a settlement payment of $ 1.03 million and a 0.03% limit on cadmium in jewelry was the result. Also in 2011, several Forever 21 women's shirts were criticized by online users for seeming anti-education and sexist, including one that said "Allergic to Algebra", another that said "Skool sucks", and a third that had "I heart school" on the front and "not ..." on the back. Stating to ABC News that "our intent
812-970: Is an item used to contribute, in a secondary manner, to an individual's outfit . Accessories are often chosen to complete an outfit and complement the wearer's look. They have the capacity to further express an individual's identity and personality. Accessories come in different shapes, sizes, hues, etc. The term came into use in the 16th century. Fashion accessories may be loosely categorized into two general areas: carried accessories and worn accessories. Carried accessories include purses and handbags , hand fans , parasols and umbrellas , wallets , canes , and ceremonial swords . Worn accessories include cravats , ties , hats , bonnets , belts and suspenders , gloves , muffs , necklaces , bracelets , watches , eyewear , sashes , shawls , scarves , lanyards , socks , pins , piercings , rings , stockings and hair ties . Shoes , boots , sneakers , and all types of footwear are not accessories but 'wear for
870-659: Is an over-supply of malls as the growth rate of malls in North America between 1970 and 2015 was over twice the growth rate of the population. In 2004, Malcolm Gladwell wrote that investment in malls was artificially accelerated when the United States Congress introduced accelerated depreciation into the tax code in 1954. Despite the construction of new malls, mall visits declined by 50% between 2010 and 2013 with further declines reported in each successive year. A major reported contributing factor to
928-407: The COVID-19 pandemic . The main factor cited in the closing of retail stores in the retail apocalypse is the shift in consumer habits towards online shopping . Holiday sales for e-commerce increased by an estimated 11% to 20% from 2015 to 2016. The same year, brick-and-mortar stores saw an overall increase of only 1.6%, with physical department stores experiencing a 4.8% decline. Another factor
986-442: The "Amazon effect" and calculated that Amazon.com was generating more than half of retail-sales growth. Not everyone agrees that a "retail apocalypse" exists. Dissenting economists and experts asserted that recent retail closures are a market correction, suggesting that the phrase is misleading and instills insecurity in the 16 million U.S. retail workers . Research published by global retail analyst IHL Group in 2019 suggests that
1044-600: The Chicago Tribune wrote that, while many retailers were scaling back expansion to adjust for the economy, Forever 21 was "going gangbusters" and expanding at a fast rate: over the prior three years its number of stores had doubled to around 400 worldwide. In 2011, assets were $ 1.4 billion and profits were $ 124 million. That year the company was involved in a number of controversies. The Center for Environmental Health found that 26 retailers and suppliers, including Forever 21, had been selling jewelry containing cadmium ,
1102-669: The UK and EU markets, opening online stores for British customers. In October it signed a licensing deal with AR Holdings to launch the brand in nine Latin American countries. Among other countries, in early 2020, it pulled out of Guam , South Africa and Lebanon . In May 2021, Brookfield Property Partners sold its stake in Forever 21 for $ 63 million. After YM Inc. became the Canadian licensee for Forever 21 in June 2021, Hudson's Bay announced
1160-474: The UK, this number reached 43%. In June 2020, retail research firm Coresight reported that they estimated that the number of store closures due to the pandemic and ensuing recession would exceed the 2019 record of 9,302. Coresight Research data later indicated that store closures had reduced by 49% from 2020 to 2021, with store openings increased by 36% over the previous year. Clothing and accessories accounted for 43% of retail closures in 2021. In July 2022,
1218-602: The United States were classified as essential businesses and were not required to shut down. Buyers stated that they would deliberately buy products from such categories as food and drinks, hygiene, household cleaning, clothing , health, and consumer electronics online rather than in person due to COVID-19. The outbreak is said to have changed shopping behavior permanently: in the US, 29% of surveyed consumers stated that they had no intention to ever go back to offline shopping. In
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#17327909509671276-583: The analytics firm published findings that store openings had exceeded store closings for the first half of 2022, and that there were 10% fewer closings and 3% fewer openings than in 2021. 2. Filed February 2023; announced liquidations in April Researchers say retailers' survival may be tied to customer experience and brand reputation. In 2019, Forbes said brand reputation was the biggest factor. In 2020, Monash University in Australia said
1334-404: The apocalypse since they have continued growing rapidly, are now perceived as being at best a symptom of the phenomenon, and at worst a direct cause of rural, independent retailers collapsing, unable to compete with the lower margins that national chains can sustain. Poor retail management coupled with an overcritical eye towards quarterly dividends cause a lack of accurate inventory control, so
1392-645: The beauty chain Riley Rose in 2017, and later that year the company opened its 21st store in India. In 2017, revenue was $ 3.4 billion, a significant drop from the year prior. Facing competition from other fast fashion brands, in 2018, it began downsizing its stores during what was dubbed a retail apocalypse . It left the Netherlands in January 2018, Thailand in June 2018, and Ireland in late 2018. Forever 21 then pulled out of Taiwan on March 31, 2019. In July 2019,
1450-400: The blogger to take the site down or she might face a lawsuit . In September 2012, a lawyer filed a class action lawsuit against Forever 21 after receiving a penny less than original value during a return. According to media reports, to meet the $ 15,000 threshold in damages for the lawsuit to move forward, the case needed 750,000 other customers to sue as well. Forever 21 declined to comment on
1508-488: The claims were meritless. In early 2022, Forever 21 collaborated with Hervé Léger , Sports Illustrated , and Barbie . That summer, the company opened a new flagship store in India licensed by Aditya Birla Fashion and Retail . In June 2022, Poetic Brands was granted licensee rights to manufacture, market, and distribute the brand in the United Kingdom and Europe. In August 2023, Shein and SPARC Group entered into
1566-554: The company also focused on whole families, rather than teenagers exclusively, and at a typical 25,000 square feet, had significantly larger stores. In 2006, the company opened its 40,000 square-foot showcase store in Pasadena, California , offering women's, men's, and children's clothing, as well as accessories and lingerie. Forever 21 was also operating a website and a number of free-standing For Love accessories stores. The company increased its square footage by 30% in 2007. In April 2008,
1624-525: The company experienced a 32% drop in global sales. Wrote Women's Wear Daily about the bankruptcy, "the company over expanded with too many stores that were too big, and lacked sufficient e-commerce business." On September 29, 2019, Forever 21 filed for Chapter 11 bankruptcy protection . To downsize, the company announced that it was ceasing operations in 40 countries and closing a percentage of its 600 stores, particularly those in Asia and Europe, and to add focus to
1682-433: The company was accused of fat shaming when they included weight-loss bars with orders containing plus-sized clothing. Forever 21 apologized, stating the bars were an "oversight." The global explosion in fast fashion competitors, reputation damage (caused by both labor rights groups and environmentalists), high cost rental locations, and competition from online retail led to a temporary collapse in global operations. In 2019,
1740-513: The e-commerce company Global-e, targeting consumers in Canada, Asia Pacific, and Latin America. On February 2, 2020, it was announced that Forever 21 had reached a deal to sell all of its assets for $ 81 million to Simon Property Group , Brookfield Properties , and brand management firm Authentic Brands Group (ABG). ABG and Simon each acquired 37.5% of the company's intellectual property and operating businesses, while Brookfield acquired 25%. SPARC,
1798-562: The end of 2016, Sears operated 1,430 stores. In October 2018, Sears filed for bankruptcy and announced it would close an additional 142 of its 687 stores. At the time of filing, Sears had 68,000 employees. The phrase "retail apocalypse" began gaining widespread usage in 2017 following multiple announcements from many major retailers of plans to either discontinue or greatly scale back a retail presence, including companies such as H.H. Gregg , Family Christian Stores and The Limited all going out of business entirely. The Atlantic described
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1856-600: The face of rising costs, leveraged buyouts , low quarterly profits outside holiday binge spending, delayed effects of the Great Recession , and changes in spending habits. American consumers have shifted their purchasing habits due to various factors, including experience spending versus material goods and homes, casual fashion in relaxed dress codes , as well as the rise of e-commerce and particularly juggernaut companies such as Amazon.com and Walmart . A 2017 Business Insider report dubbed this phenomenon
1914-505: The foot'. The type of accessory that an individual chooses to wear or carry to complement their outfit can be determined by several factors, including the specific context of where the individual is going. For example, if an individual is going to work their choice of accessory would differ from someone who is going out to drinks or dinner; thus depending on work or play different accessories would be chosen. Similarly, an individual's economic status, religious and cultural background would also be
1972-408: The garment workers, with the 2007 documentary film, Made in L.A. , capturing the movement. The charge was dismissed by U.S. District Court Judge Manuel Real , Forever 21 responded with a defamation suit in 2002, asserting that its reputation and sales were both impacted by the allegations and protests. In response, Kimi Lee, the director of an advocacy groups representing the workers, maintained that
2030-529: The highest densities in California, Texas, Florida, New York, Georgia, New Jersey, Pennsylvania, and Illinois. The original store in Los Angeles remained in operation until 2020, bearing the chain's original name. Outside of the United States, most of its stores are franchised or, in some markets, operated as joint ventures with local partners. The average store size is 38,000 square feet (3,500 m). Fashion accessory In fashion , an accessory
2088-402: The hours on time cards were reduced, that workers who complained to the state were fired, and that the employees faced sweatshop-like working conditions. Forever 21 denied the accusations, asserting its commitment to fair labor practices and that "none of the workers named in the suit were directly employed by the company". A three-year boycott of Forever 21 was held throughout the United States by
2146-511: The last year. As of May 2020, bankruptcies and store closings were expected to intensify due to widespread business closures and the resulting financial impact of the COVID-19 pandemic . J. Crew , Century 21 , Neiman Marcus , Stage Stores , Stein Mart , Lord & Taylor , JCPenney , Tuesday Morning , and Pier 1 Imports were among the first major retailers to file for bankruptcy during
2204-564: The lawsuits had been justified by complaints from 20 workers. Both cases ended in a settlement in December 2004. Five Forever 21 employees filed a class-action lawsuit in January 2012, alleging that they had not been paid for bag checks and extra work during lunch breaks and the time spent on bag checks. After the Labor Department found that some of Forever 21's suppliers had violated various federal laws on wages and record-keeping,
2262-424: The matter on "amicable terms", settling out of court. On 28 January 2015, the software developers Adobe , Autodesk and Corel filed a joint lawsuit against Forever 21 for allegedly using unlicensed copies of Photoshop , AutoCAD and PaintShop Pro , respectively. Asking for a jury trial, Forever 21 denied the allegations, accusing Adobe of bullying over online licensing fees, and asserting an "implied" license, as
2320-636: The matter, citing pending litigation. By 2013, there were more than 480 stores and revenue of $ 3.7 billion. Between 2005 and 2015, international stores jumped from seven to 262. The family-owned company, which including the founders’ daughters, Linda Chang as executive vice president, and Esther Chang as vice president of merchandising, Forever 21's sales peaked in 2015, with $ 4.4 billion in global sales that year. Continuing to expand internationally, as of 2016, it had 31 locations in Brazil, although it had recently pulled out of Spain and Belgium. Forever 21 introduced
2378-584: The name Fashion 21 to Forever 21 and changed the business model to fast fashion , drawing from trending fashion and selling the items for low prices. Sales were high enough in the first decade that the company added new stores on an average of every six months, largely in malls. Forever 21 purchased the chain Gadzooks for $ 33 million in 2005, then doubled its number of stores to 400, over the next two years; retail analysts estimated sales growth from $ 640 million in 2005 to $ 1 billion in 2006. Unlike its competitors,
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2436-647: The pandemic, including J. Crew , Century 21 , Neiman Marcus , Lord & Taylor , Stage Stores , Stein Mart , JCPenney , Tuesday Morning , and Pier 1 Imports . The most productive retailers in North America during the retail apocalypse are discount superstores Walmart and Target , low-cost " fast-fashion " brands ( Zara , H&M ), dollar stores ( Dollar General , Dollar Tree , Family Dollar ), and warehouse clubs ( Costco , Sam's Club , and BJ's Wholesale Club ). The phrase "retail apocalypse" first appeared in print in an early 1990s essay by Peter Glen, author of It's Not My Department! Media appropriated
2494-453: The phenomenon as "The Great Retail Apocalypse of 2017", reporting nine retail bankruptcies and several apparel companies having their stock hit new lows, including that of Lululemon , Urban Outfitters , and American Eagle . Credit Suisse , a major global financial services company, predicted that 25% of U.S. malls remaining in 2017 could close by 2022. Since 2017, the phrase is frequently applied to brick-and-mortar closures in retail, with
2552-488: The profitable core part of its operations in the U.S. and Latin America , as well as on e-commerce and licensing agreements. Over the next year, it withdrew from Hong Kong, Portugal, Japan, and Canada, and closed its website and physical stores in England. By January 2020, the company had cut 350 of its 815 international stores under president Alex Ok. That month, Forever 21 relaunched its online store in 30 countries through
2610-424: The profitable operation of retail chains. The COVID-19 pandemic exacerbated many issues affecting retailers, as many were forced to shut down due to non-pharmaceutical interventions that were issued in an effort to mitigate the pandemic. At the same time, online shopping boomed during the coronavirus-related lockdown, even though it came back down starting in 2022. Most of the major e-commerce retailers in
2668-523: The retail apocalypse creating a domino effect on manufacturers and suppliers; Hasbro , for example, cited the loss of the Toys "R" Us chain as a major cause for lost revenue and layoffs the company imposed in October 2018. A 2019 analysis conducted by IHL Group international research and advisory firm found that when a retailer closes many stores, it indicates more about the individual retailer rather than
2726-399: The retail industry overall. In 2019, the 20 stores announcing the most closures represent 75% of all closures. IHL found that for each retailer closing stores in 2019, more than five retail chains are opening stores, an increase from the 3.7 ratio of 2018. IHL also reported that the number of chains adding stores in 2019 had increased 56%, while the number of closing stores decreased by 66% in
2784-407: The sales floor suffers from underperforming merchandise and out-of-stock merchandise, creating a poor shopping experience for customers. The focus on short-term balance sheets induces management to understaff retail stores in order to keep profits high. Furthermore, many long-standing chain retailers are overloaded with debt , often from leveraged buyouts from private equity firms, which hinders
2842-626: The so-called retail apocalypse narrative was an exaggeration, with "more chains that are expanding their number of stores than closing stores.” That year, retailers in the United States announced 9,302 store closings, a 59% jump from 2018, and the highest number since tracking the data began in 2012. Corporate bankruptcies and store closings increased in 2020. During the COVID-19 pandemic , most retail stores, especially struggling mall -based retailers, closed for extended periods of time. Several large retail companies filed for bankruptcy during
2900-530: The software came bundled with other products. The case was settled in March 2016. In September 2019, American singer Ariana Grande accused and sued Forever 21 for $ 10 million for copying her style and likeness by dressing up their models the same way in their photo-shoot from her music video of " 7 Rings ". The brand operates stores in multiple countries. As of May 2022, Forever 21 operated over 600 stores, including, as of July 2022, 407 U.S. stores in 43 states, with
2958-728: The supposed retail decline is an ongoing "restaurant renaissance"— a shift in consumer spending habits for their disposable income from material purchases such as clothing towards dining out and travel . Another cited factor is the "death of the American middle class " represented by declining real wages and rising costs creating a middle-class squeeze , resulting in large-scale closures of retailers such as Macy's , JCPenney , and Sears which traditionally relied on spending from this market segment. Particularly in rural areas, variety stores such as Dollar General , Dollar Tree , and Family Dollar , once thought to be unaffected by
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#17327909509673016-422: The term to refer to multiple brick-and-mortar store closures resulting from shifts in consumer spending . Since at least 2008 ( Global Financial Crisis ), various economic factors have resulted in the closing of many stores in North America, the United Kingdom, and Australia, particularly in the department store industry. For example, Sears Holdings had more than 3,500 stores and 355,000 employees in 2006. By
3074-537: The three key factors were delivering a "great in-store retail experience", customer-targeted stock offerings, and "seamless omnichannel integration". Toys "R" Us may not have responded well to changing consumer behavior . Some retail chains are trying robots and other technologies to reduce costs or improve customer experiences. Ikea became one of the first retailers to use Apple 's ARKit to develop an augmented reality app that allowed customers to visualize 3D renderings of Ikea products as they would appear in
3132-440: The time, Von Furstenberg had been lobbying Congress to expand standing copyright statutes to protect clothing designs. However, The New York Times then noted that "[2007 American law] does not protect clothing design from being copied (logos are an exception)," opining the lawsuits would be unlikely to end in verdicts against Forever 21. In 2007, Forever 21 was "permanently enjoined from duplicating DVF designs". The Trovata case
3190-603: Was located at 5637 N. Figueroa Street in the Highland Park district of Los Angeles. Funded with $ 11,000 in savings, designs similar to those seen in South Korea were sold to and targeted at the Los Angeles Korean American community . Merchandise was acquired at wholesale closeouts from manufacturers. with sales totaling $ US 700,000 in the store's first year of operation. The Changs later changed
3248-469: Was not to discredit education," Forever 21 pulled the "Allergic to Algebra" shirt from its website. In April 2010, Rachel Kane, a writer and Forever 21 customer created a blog with the domain name WTForever21.com. Kane posted pictures of some Forever 21 items and voiced her opinions about the clothing. The blog's popularity rose after being featured on the Jezebel blog and, in June 2011, the retailer asked
3306-475: Was the slide bracelet . Slide bracelets were worn after the wrist watch came into fashion. During the early 16th century, in Italy hat badges were worn by civilian men of higher social status as a decorative item, in imitation of the cap badges worn by the invading military. Hat badges were often worn in conjunction with a decorative sword and hilt. Hat badges were fashioned after plaquettes and often depicted
3364-460: Was the only instance where the case was brought to a jury. After a mistrial, where five jury members sided with Trovata and one with Forever 21, Forever 21 settled before it could go to retrial. in May 2009. As of 2011, Forever 21 had never been found guilty and the majority of cases had been resolved through settlements . In 2011, the company sent a cease-and-desist letter to the owner of WTForever21.com,
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