Forever 21
Authentic Brands Group (brand owner) · United States
Forever 21 is an American fast fashion brand founded in Los Angeles in 1984 by Do Won Chang and Jin Sook Chang. After two bankruptcies its US stores closed in 2025, and the brand is now owned by Authentic Brands Group, which licenses it to partners for online and international business.
| Founded | 1984, Los Angeles |
|---|---|
| Founders | Do Won Chang, Jin Sook Chang |
| Brand owner | Authentic Brands Group |
| US stores | Closed in 2025 after second bankruptcy |
| Model | Licensing |
| Website | forever21.com |
What is Forever 21?
Forever 21 is a value fashion brand known for trend-led clothing and accessories at low prices for women, men and children. The trademark and intellectual property belong to Authentic Brands Group (ABG), which licenses the name to operating partners rather than running stores itself.
History
Do Won Chang and Jin Sook Chang, immigrants from South Korea, opened the first store in the Highland Park area of Los Angeles in April 1984 under the name Fashion 21. The chain expanded rapidly in the United States and abroad but filed for bankruptcy in 2019. In 2020 its assets were bought by Simon Property Group, Brookfield Properties and ABG, with operations managed by their joint venture SPARC.
By early 2025 the US operating company was part of Catalyst Brands, the group that also includes JCPenney. It filed for Chapter 11 protection in March 2025, and its US stores were liquidated and closed by May 2025. The filing did not affect ABG's ownership of the brand or the international licensees. In September 2025 a relaunch as an online business in the United States was announced, run by licensing partners for e-commerce and wholesale, with no plans for US stores.
Business model and distribution
Forever 21 now operates as a licensed brand. Partners include licensees in Mexico, Latin America, Canada, the United Kingdom and Europe, China and India, where Aditya Birla Fashion and Retail runs stores. This asset-light structure separates the owner of the name from the companies that design, source and sell the product.
- Brand owner: Authentic Brands Group
- US: online relaunch through licensees
- International: regional licence and franchise partners
Why it matters
Forever 21 is a case study in how the US mall-based fast fashion model came under pressure from cheaper online competitors and changing shopping habits. Its path from family-owned chain to licensed brand also illustrates the growing role of brand management companies that buy distressed names and monetise them through licensing.
Frequently asked questions
Who owns Forever 21?
The Forever 21 brand and trademark are owned by Authentic Brands Group, which acquired them with partners in 2020. After the US operating company, part of Catalyst Brands, went bankrupt in 2025, ABG continued to license the brand to other companies.
Is Forever 21 still in business?
Its US stores closed in 2025 after the second bankruptcy, but the brand continues. Licensees operate it in several international markets, and a US online relaunch through licensing partners was announced in September 2025.