Popular fashion retailer, Forever 21 has announced bankruptcy at the end of 2019. There have been many investors interested in buying the 100% rights of the retailer. Authentic Brands Group became the only company that agreed on this deal. The new group will buy all the shares of Forever 21 and give the company a new boost.
“Authentic Brands Group” have brought 7 fashion retailers in 2019. Forever 21 will be the last deal as the CEO of the company said. The company has paid more than $81 million in “Forever 21”. The deal with “Forever 21”, made them the second biggest “brands management” group in the world. It became the biggest group after “Disney”.
Closing the shops in the US and Canada
Forever 21 has more than 100 shops around the world. Most of the shops are situated in North America, particularly in Canada and the United States. CEO of the group, Jamie Salter, said that the company will close many shops in the US and Canada. Salter has a global ambition but in the digital space. Salter says that “Forever 21” will focus on digital stores and follow the narrative of Justin Trudeau. Justin is praising the digital world and wants to transform Canada’s economy into the digital economy.
Forever 21 is one of the biggest fashion retailers in Canada. The company has up to 10% market share in Canada’s fashion retailer sector. Is it an important signal for other brands that own malls and shops in Canada?
A new wave of digital-driven economy
Canada’s government helps companies that invest more in online business. That was the fundamental idea of the digital charter that Justin Trudeau introduced to Canadain business entities.
The first wave started with an online casino and betting sites. Back in 2018, after introducing digital charter, Canada’s online casinos saw a massive rise in global competition. Digital charter helped online casinos to have a friendly law pattern and make companies’ online presence better. The eco-system of online gambling is way ahead of the competition. After an obvious transformation of industry, internet users spend more time playing online casino games.
During the first wave, casinos have created poker, slots, roulette and other games for internet users. Owners of casinos have created a better dashboard for user experience. Companies have enabled various online platforms for secure transactions including PayPal, Venmo, Paynoor, Bitcoin, Ripple, etc.
Fashion retailers could be in the second wave of the digital charter. Forever 21 is the first example of how to transform the business into a digital-driven company.
CEO has a plan for global domination
Authentic Brand Group has big plans for Forever 21. The new CEO of the company wants global domination in the digital fashion retail industry. Jamie said that most of the shops will be closed in the US and Canada. The company won’t close the shops in Europe or Asia.
The first big campaign toward online domination starts in 2020. Group owners along with CEO have confidence that it will be a new chapter in the success story of Forever 21. The company will change the UX of online stores, add new payment options and work on long-term promotion.