Another much-needed shake-up for FOREVER 21 has come in the form of a new CEO.
The struggling apparel retailer has seen some financial difficulties over the years and is frantically attempting to turn things around.
Who owns Forever 21?
Authentic Brands, a clothing retailer, is the owner of the fashion label.
Together with Simon Property Group and Brookfield Property Group, the SPARC group owns 37.5 percent of Forever 21.
In an effort to change the brand’s dismal future and financial situation, they purchased the brand and all of its assets for $81 million in February 2020.
The struggling clothes retailer failed amid the global upsurge in fast fashion, suffering a shocking 32% decline in global sales in 2019.
Later that year, the business was compelled to seek Chapter 11 bankruptcy protection and shut down hundreds of locations across the globe.
They submitted an IPO application in July 2021 and were scheduled to list on the New York Stock Exchange before canceling their intentions in January 2022.
In a deal valued at $12.7 billion, including debt, the new owners of Forever 21 agreed to sell a stake to private equity companies CVC Capital Partners and HPS Investment Partners in November 2021.
Who is Winnie Park, the new CEO of Forever 21?
Early in January 2022, Forever 21 named Winnie Park as their new CEO in an effort to revive their flagging sales.
The seasoned businesswoman brought a number of other firms into the digital era, which helped change them.
Park spent nine years at DFS, a luxury store owned by LVMH, where he helped establish the company’s first international e-commerce site, before joining the Forever 21 team.
After starting her career at McKinsey & Company in fashion retail and consumer internet, Park has decades of experience in the fashion industry and has also headed women’s merchandising at Levi Strauss-owned Dockers.
The new CEO also serves on the board and audit committee of Dollar Tree and identified herself as a “longtime customer and admirer” of Forever 21.
Daniel Kulle, the former CEO, left his position after less than two years.
In a statement about her new position, Park said: “I am honored to join Forever 21 at such a vital period of reinvention and reinvigoration as a longtime customer and fan of the brand.
With a focus on the Forever 21 community, including its people, mission, and business priorities across digital and conventional retail channels, I am looking forward to collaborating with this amazing leadership team to continue the development of this brand.
Who are the creators of Forever 21?
Do Won Chang and Jin Sook Chang, a husband and wife team, established Forever 21 in Los Angeles in 1984, when it was still known as Fashion 21.
The South Korean couple’s clothing line initially had great success, but over time, things have taken a dramatic turn for the worse.
Before accepting the $81 million offer for Forever 21, they had to declare bankruptcy after losing their billionaire status.
According to reports, the couple has spent roughly $4 billion of their personal money trying to keep the company going since 2015.
Forever 21 struggled despite going global and offering a greater variety of goods because of its involvement in numerous controversies.
