Which brand management company led the acquisition of Forever 21 in 2020?

Authentic Brands Group led the brand-management side of Forever 21’s 2020 acquisition. The deal was completed after Forever 21 entered Chapter 11 bankruptcy protection in September 2019.

ABG did not buy the retailer alone. It joined Simon Property Group, a major mall owner, and Brookfield Property Partners in a consortium that acquired Forever 21’s assets for about $81 million. ABG and Simon each received 37.5% of the intellectual property and operating businesses, while Brookfield received 25%.

The arrangement reflected a different approach to distressed retail acquisitions. ABG specialized in owning and licensing brand intellectual property, while Simon and Brookfield were major landlords with a direct interest in keeping stores operating. The new owners used SPARC, a joint venture associated with ABG and Simon, to manage the business.

A common mix-up is naming Simon Property Group as the sole buyer because it was highly visible in the transaction. Simon was an important partner, but Authentic Brands Group was the brand-management company identified with the acquisition and later helped expand Forever 21 through licensing partnerships.