If you can’t beat them join them. That’s the strategy behind saving the Forever 21 name as the last remaining stores are shuttered and the brand pursues a model that is similar to its online competitors.
Forever 21
US Bankruptcy Judge Mary Walrath gave the company temporary permission on Tuesday to start going-out-of business sales at all of its 354 stores while managers try to find a last-second rescuer for part of the 41-year-old clothing chain.
Forever 21 has “had advanced discussions with third parties” about rescuing part of the chain, company attorney Andrew L. Magaziner said during the court hearing. The situation “remains fluid.”
Since the 1980s, Forever 21 stores have attracted droves of young women by selling low-cost, trendy clothing. But the company was undone by the rising cost of inventory and wages and competition from online retailers, like Temu and Shein that can skirt import duties and tariffs by shipping goods directly to consumers, the company said in court papers.
It’s the company’s second bankruptcy and the latest brick-and-mortar store to fold in a wave of closures over the past decade or so. The pace of failures picked up during the pandemic as malls closed, and buyers turned to online sellers during lockdown.
Should it fail to find a partner to rescue some of its stores, Forever 21 would rely on shipping goods directly from overseas factories to consumers and to other retail outlets, according to a person familiar with the company’s plans. Authentic Brands Group LLC, the apparel and lifestyle label empire which owns the Forever 21 name and other intellectual property, has successfully tested the factory-to-retailer model outside the US, the person said.
Last year just 11% of Forever 21’s sales were online, according to court papers. The company also plans to sell Forever 21 apparel in partner stores, including in JCPenney where such an arrangement is already underway.
Currently, Forever 21 uses a traditional structure in which designers and other vendors in the US acquire merchandise from overseas factories, mainly in China, Korea and Hong Kong, according to court records. That material is then sent to Forever 21 stores and warehouses, which requires the company to pay duties and tariffs, the records show.
Authentic Brands will continue to own the IP and may license the brand to other operators, according to a statement Sunday. Forever 21’s locations outside of the US are operated by other licensees and aren’t included in the bankruptcy.
The company plans to finish shutting its stores by the end of April, Magaziner said in court on Tuesday. If a buyer appears for some of the stores, the company would adjust its strategy, he told Walrath.
A joint venture of Hilco, Gordon Brothers Retail Partners LLC, and SB360 Capital Partners is working on the liquidation.
The court also approved a request to use secured lenders’ cash to fund the bankruptcy cases and payrolls. The company entered the Chapter 11 with about $47.2 million bank cash, according to a budget disclosed in the court papers.
It’s the clothing brand’s second stint with bankruptcy. Its first in 2019 was rife with fighting, left creditors little recovery and resulted in the closing of hundreds of locations it had during its heyday.
A group of buyers — including Simon Property Group Inc., Brookfield Corp. and Authentic Brands — teamed up to buy Forever 21 out of bankruptcy through a venture called Sparc Group. That group partnered with Shein in 2023 as Forever 21 attempted to solve some of its operational issues.
A few months ago, US retail group JCPenney acquired Sparc, forming Catalyst Brands. The deal saw its previous shareholders maintain minority stakes in the company. At the time of the merger, Catalyst said it was exploring strategic options for the operations of Forever 21.
You’ll no doubt be aware of the annual Sunday Times Rich List, but such is its powerful and ever-growing success, there’s now a specific Beauty Rich List too.
Charlotte Tilbury
The newspaper has published 30 entries of both familiar and unfamiliar names that have scaled the heights to built wealth by taking on (or joining) the established high order. Topping the list? Charlotte Tilbury, with her now-Puig-owned brand worth over £1 billion and her estimated personal wealth standing at £350 million.
The list comprises 19 women and 14 men with 14 of them aged in their twenties or thirties. Together, they’ve amassed personal fortunes adding up to nearly £2.2 billion.
In second placed are Mark and Mo Constantine, having accumulated £249 million via their high street mass retail brand Lush.
Third place goes to Sanjay Vadera of The Fragrance Shop fame, with a personal wealth of £245 million, while fourth spot goes to international hair brand and former hairdresser celebrity John Frieda, now worth an estimated £150 million. Fifth-placed Vishal Karia, via his Afinity Fragrances business, is worth £114 million.
At joint sixth, Elliot Isaacs, who launched skincare brand Medik8 in 2009, is worth £100m, and is joined by Sacha Mascolo-Tarbuck and family, of Toni & Guy hairdressing fame, and Paige Williams, with her P Louise also worth £100m.
Susie Ma, the Tropic Skincare brand founder, at £73 million, and GelBottle brand founder Daisy Kalnina, at £70 million, round out the top 10.
Elsewhere rounding out the top 30 are: Trinny Woodall, (Trinny London), £54 million at 12th; Jenna Meek (Shrine and Refy), £53 million; Susan Harmsworth (ESPA), £50 million; Martin and Gavin Rae (Cloud Nine), £50 million; Jess Hunt (Refy) £46 million; Mike Harris and family (The Belgravia Centre), £42 million; Maxine and Darcy Laceby (Absolute Collagen), £34 million; Elliot Barton/Charlotte Tiplady, (Tatti Lashes), £32 million each; Georgie Cleeve and family (Oskia), £28 million; Oliver Mennell/ Nicola Elliott (Neom), £25 million each; Mark Curry (The Inkey List), £17 million; Jamie Genevieve (Vieve), £15 million; Jo Malone, (Jo Malone), £15 million; Freddy Ward (Wild), £15 million; Colette Laxton (The Inkey List), £12 million; Ama Amo-Agyei (Plantmade), £10 million; and Charlie Bowes-Lyon (Wild), also £10 million.
Supermarket giant Sainsbury’s has appointed Ben Smith, Matalan‘s former chief trading officer, as its Clothing managing director to lead the Tu brand.
Sainsbury’s Tu Clothing
Reporting to chief commercial officer, Rhian Bartlett, Smith brings substantial clothing retail experience to the wide-ranging Tu brand.
He joined Matalan in March 2023 as interim buying and merchandising director before taking up the chief trading officer position just two months later.
Before stepping down in January, he led the company’s transformation, overseeing Commercial Strategies for over £1 billion turnover in Clothing and Home. He has also previously held trading directorship roles at mass fashion brands Pep&Co and Primark.
Smith’s expected to replace to replace Christine Kasoulis, who has been leading the supermarket’s clothing, home, and furniture ops for nearly three years, according to reports.
In a January statement for the Christmas period, Sainsbury’s reported positive trading. In Q3 (16 weeks to 4 January) total sales increased 3.7% and over Christmas they rose 3.8%. However, branded general merchandise and TU clothing saw a 0.1% sales dip, but in the Christmas period this changed to a 3.4% increase.
Clothing sales grew by 2.2%, “outperforming the market and all supermarket competitors, reflecting significant improvements in range and availability”.
Independent British fashion retailer Palava has launched its first ever collaborative collection with London’s Natural History Museum.
The marine-inspired collection is the result of the brand’s founder, designer and nature lover, Bryony Richardson gaining exclusive access to the museum’s extensive archive and rare books library.
Poring over a “treasure-trove of illustrations filled with incredible creatures from the depths of the ocean”, the result is a “unique capsule collection of three, marine life-inspired prints” – ‘coastal migration’, ‘ocean jellyfish’, and ‘the coral reef’ – which feature on the range’s signature silhouettes.
“When the opportunity presented itself, we knew we had to go for it,” said Richardson. “Collaborating with the Natural History Museum felt just up Palava’s street and to have special access to the incredible archives to pick and choose from was a total joy. With our fascination for the natural world, coupled with our tendency to collect all sorts of weird and quirky specimens and objects, it feels like a match made in colourful heaven.”
So the collection “pays homage to the talented illustrators and scientists whose important work has helped develop our understanding of the natural world”.
Maxine Lister, head of Licensing at the Natural History Museum, added: “Given our aligned values and dedication to sharing the wonder and beauty of marine life, it should come as no surprise that we’ve collaborated on a wonderful collection showcasing the incredible archive of illustration at the Museum. Creating a collection which is both sustainable and striking was and continues to be key for the… Museum, and this new collection is no exception.”
The current Palava x Natural History Museum collection will see a further drop arrive on 5 April on the brand’s website and into its North London store. Prices range £89 for its Coral Reef Kit shirt and Coral Reef Peggy blouse to £198 for the Coastal Migration Louise Dress and Ocean Jelly Fish Cynthia Dress.
Entertainment8 years ago