The History of Forever 21

Forever 21 was founded by husband-and-wife team Jin Sook and Do Wong Chang, who emigrated from South Korea to Los Angeles, California in 1981. The first store was opened in California in 1984 and was originally known as Fashion 21 (the name was later changed to Forever 21). The couple opened that first location with just $11,000 in savings, but after earning $700,000 in revenue in their first year of business, they embarked upon a rapid expansion, opening a new store every six months. All stores were located in California until 1995, when a Forever 21 location was opened at the Mall of Americas in Miami, Florida. Over the years, Forever 21 became known for its young consumer base and low prices. At its peak in 2015, Forever 21 was an international company with revenue topping out around $4.1 billion, but it remained a family-run operation with Do Won serving as CEO, Jin Sook working as the Chief Merchandising Officer, and their daughters Linda and Esther leading Marketing and Graphic Design, respectively. However, in September 2019, Forever 21 filed for Chapter 11 bankruptcy. The change in the company’s fortunes was attributed to a variety of factors, including lessened consumer interest in “fast fashion” and an increased interest in sustainability, the sharp increase in e-commerce, and declining foot traffic in stores. In 2020, Forever 21’s assets were sold to a consortium of buyers, including mall owners Simon Property Group and Brookfield Property Partners as well as brand management firm Authentic Brands Group, of which Shaquille O’Neal is the second-largest individual shareholder. These entities helped Forever 21 survive, and while it is no longer the juggernaut it was in the 2010s, the retail chain remains popular in many malls in the U.S. today and is still known for offering trendy, low-cost merchandise.