Forever 21 is further expanding its reach.
Under the terms of the deal, AR Holdings will distribute the brand across all channels in the region including e-commerce, wholesale and 26 retail stores in Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Panama and Peru.
“Over the last eight years, Forever 21 has established a strong foothold in Latin America and we are excited to launch the next phase of its growth in the region,” said Jarrod Weber, group president of lifestyle and chief brand officer of ABG. “AR Holdings is an experienced leader in the Latin American retail market with vast expertise in the fashion, home and restaurant industries. We look forward to kicking off this long-term partnership.”
John Keith, president of AR Holdings, said the deal with ABG to bring the Forever 21 brand to nine Latin American countries “clearly reflects our determination to continue growing our business throughout the region. We are honored that ABG has confidence in our ability to continue positioning Forever 21 as the go-to fashion retailer throughout Latin America and expect this to be the first of many business ventures between AR Holdings and ABG.”
The plan is to launch an e-commerce site for the brand in Latin America sometime in 2021.
ABG purchased Forever 21 out of bankruptcy court in partnership with Simon Property Group and Brookfield Property Partners for $81.1 million in February. In June, has tapped IB Group to serve as licensee for the brand. In June, it licensed IB Group to expand the brand in Mexico.