The retailer is set to offload all its stores and brands

In September, popular clothing brand Forever 21 declared bankruptcy under chapter 11. To reduce leasing expenses, the company revealed its intention to shut down numerous stores in the US and other countries. However, for the brand to continue its business operations, it needs a new owner.

A consortium is eyeing a deal to buy Forever 21’s assets for around $81 million. This potential acquisition would encompass all operational stores of Forever 21 and the ownership rights to its cosmetics line, RileyRose. The consortium is a conglomerate of various property and brand management firms such as Simon Property Group, Brookfield Properties, and Authentic Brands Group. Referred to as the “stalking horse group,” they hold the primary position to acquire Forever 21 subject to the approval of a federal judge and a deadline set for February 7. Other interested buyers can still submit their bids for Forever 21 until the specified deadline arrives. This proposed acquisition would mark Authentic Brands Group’s second notable purchase after their recent acquisition and subsequent closure of the upscale New York department store chain, Barneys.

A spokesperson from Forever 21 expressed optimism about the prospective deal, stating, “Upon approval of this agreement, Forever 21 can emerge from bankruptcy, maintaining its headquarters, retail outlets, and online sales operations, thus continuing to provide customers with beloved fashion trends for years to come.”