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.
Sports, fashion and lifestyle brand JD and premier mixed martial arts organisation UFC have launched a new European partnership.
Building on the success of activations in 2024, this year JD strengthens its presence by officially establishing itself as a key partner across UFC events. This will begin on Saturday (22 March) at UFC Fight Night: Edwards vs Brady at The O2 in London.
And continuing the link is understandable, given UFC boasts a global fanbase of more than 700 million with such events as Saturday’s broadcast in over 170 countries. With over 300 million social media followers, UFC also “has built a powerhouse brand that transcends sports”.
JD says the collaboration will put its community “at the heart of elite combat sports, offering exclusive behind-the-scenes access before and after events”.
Under the partnership, JD branding will be featured on UFC’s Octagon at European events, while collaborative digital content “will create greater fan engagement”.
Throughout the year, JD will also host a series of fan-centric events across Europe, “providing exclusive access to world-class [mixed martial arts] MMA”.
Neil Corrie, brand director EMEA at JD, said: “Our… community has shown an incredible passion for UFC, and we are listening. This partnership marks the beginning of a series of events and content opportunities designed to create real connections between our consumers and the world of UFC. Together, we’re taking the fan experience to the next level, moving Forever Forward.”
Nicholas Smith, senior VP of Global Partnerships for media conglomerate TKO, added: “JD is a brand at the forefront of youth culture. It is a perfect match for UFC’s dynamic and passionate fanbase. We look forward to engaging and inspiring audiences across Europe like never before.”
Following on from an activation at Westfield Stratford, a handful of JD shoppers will be entered into a draw for a chance to win tickets to Saturday’s event. Five winners (plus one guest each) will witness UFC action live from the arena.
Collaborations are a key part of Clarks Originals’ DNA and the latest doesn’t disappoint, especially for rock music lovers. The footwear brand has picked brooding star Liam Gallagher to help it celebrate its 200th anniversary.
It’s an obvious choice given its first collab with the former Oasis band frontman was an instant sell-out success in 2022, the brand notes.
Its reimagined another archival silhouette, bringing the the “long-time Clarks fan” to present his latest creation, “giving fans another chance to own a piece of Gallagher-approved footwear history”.
The exclusive collaboration sees Gallagher “breathe new life” into the Clarks Desert Rain, a rare brand silhouette originally launched in the early 2000s.
Staying true to Clarks’ heritage while adding Gallagher’s signature touch, the LG Desert Rain features Clarks Originals’ premium pebble crepe outsole; Jumbo cotton cord upper in Clarks’ tonal suede colourway; Liam Gallagher’s famous silhouette branding on the heel; double-sided suede fob, featuring Clarks Originals branding on one side and LG’s silhouette on the reverse; leather lining; Liam Gallagher branding on the heel; and tonal lace.
Gallagher’s view?“My favourite Clarks shoes are the ones that are on my feet, Desert Rain… when I put on Clarks, like when I put these [Clarks Desert Rain] on today, I feel proper”.
QVC GroupSM, part of QVC Group, announced on Tuesday the appointment of Alex Wellen to the role of president and chief growth officer, QVC Group.
Alex Wellen – Courtesy
In his new role, Wellen will lead QVC Group’s growth strategy across U.S. social selling, streaming, digital (QVC and HSN), new business development, and platform distribution. The executive will oversee a multifunctional team, introduce new capabilities into the organization, and develop and execute plans to drive success and growth at QVC Group.
He will report to David Rawlinson II, president and CEO, QVC Group, according to a press release from the television shopping network.
Wellen brings over 20 years of experience in digital media, product innovation and driving growth strategies within digital businesses across a wide range of sectors. He joins QVC Group from MotorTrend Group, where he served as CEO and president. Prior to that, he has also held strategic senior leadership roles at Turner Broadcasting and CNN Worldwide.
“Alex is a pivotal hire in our strategy to return to top-line growth by becoming a live social shopping company,” said Rawlinson.
“Alex brings an impressive blend of media and digital product expertise to our top leadership team. He has a proven ability to innovate and drive growth through live experiences on social, digital, TV and many other platforms. His unique skill set will be instrumental as we continue to execute our growth strategy, build new capabilities, and compete to win.”
Wellen’s appointment is effective immediately.
“QVC and HSN are the original disruptors. They pioneered storytelling through live shopping, and are poised to transform the experience again across social and digital, connecting consumers whenever and wherever they shop,” said Wellen. “With beloved hosts who are trusted by hundreds of millions of fans worldwide, it’s a privilege to join this iconic brand and world-class team at such a pivotal moment in the convergence of retail and media.”
Earlier this month, QVC Group announced its name change from Qurate Retail, explaining the rebrand incorporates the brand equity of the U.S. company’s largest brand, QVC, and the highlights the firm’s growth strategy to expand into a live social shopping company.
Entertainment8 years ago