California Apparel News

An auction for bankrupt retailer Forever 21 might be scheduled for as soon as Feb. 4, according to Bloomberg. A new owner for the Los Angeles–based fast-fashion retailer might be announced as soon as Feb. 11.

No buyers have been identified, but media reports have identified one potential buyer as Forever 21’s landlord, Simon Property Group, who also is listed as a creditor in its bankruptcy filing. The real-estate investment trust owns and manages prominent California malls including the Del Amo Fashion Center in Torrance, Fashion Valley in San Diego and the Stanford Shopping Center in Palo Alto. Another potential candidate is the Authentic Brands Group, LLC. The New York–headquartered brand-development company made waves in 2019 by acquiring retailer Barneys New York in a contentious auction that included a bid from Sam Ben-Avraham, an entrepreneur, retailer and Liberty Fashion & Lifestyle Fairs trade-show founder.

Forever 21’s bankruptcy has been disorganized, Bloomberg reported. In recent weeks, the retailer said that it is short on cash and may be forced to liquidate if it doesn’t find a buyer. In the 1990s and first decade of this century, Forever 21 was considered one of fashion’s most innovative retailers. But it has been criticized for not getting more involved with e-commerce and not keeping up with changing consumer tastes. The management style of the retailer’s founders, Do Won and Jin Sook Chang, also received criticism. They have kept a tight control over the company without consulting equity analysts and a board of directors.

In 2019, Forever 21 closed a number of stores in California including locations in Anaheim, Los Angeles, Pasadena, Ventura, Chico and Newport Beach, according to the State of California Employment Development Department.