Forever 21 Makes Fourth Bid to Enter China With Local Partner

The U.S. fashion and accessories specialist group has secured a Chinese partner to enter the country’s market for the fourth time since 2008, as it continues to seek a helping hand for the U.S. market, according to Authentic Brands Group, owner of Forever 21.

Chengdi, the operating company Forever 21 counts on in the Chinese industry, has announced the relaunch of its brand in Shanghai, focusing on localizing its operations and aiming to open physical stores of the U.S. company by 2026.

Last March, the fast fashion group filed for bankruptcy in the United States for the second time in five years, announcing the reduction of its operations nationwide because of growing online competition and declining mall traffic.

Forever 21 entered the Chinese market for the third time in 2022, but pulled out at the end of 2024

In 2019, Forever 21 entered the courts victim of accelerated expansion and ballooning debt, but was rescued in 2020 for about $300 million by Authentic Brands, Simon Property and Brookfield Property.

The company relaunched its business in China for a third time in 2022 and opened some stores outside the country’s major fashion capitals, but at the end of 2024 it pulled out of the market, according to local media reports.

Forever 21 was started in the 1980s by Do Won Chang, a South Korean immigrant who settled in the United States, and his wife, Sin Sooc Chang. The chain expanded rapidly thanks to its young fashion and low prices, reaching a presence all over the world, including Spain. The company reached a turnover of more than $4.1 billion and employed 43,000 people.