Shein Acquires Stake in Forever 21’s Parent Company — Retail Bum

Shein and Forever 21, two brands popular among younger shoppers and synonymous with cheap clothing options, are teaming up to expand their reach.

Under the terms of the deal, Shein is acquiring nearly a third of Forever 21’s parent company, Sparc Group. Meanwhile, Sparc will take a minority stake in Shein.

Sparc Group is a joint venture that includes America’s biggest shopping mall owner, Simon Property Group, and Authentic Brands Group, the parent company of dozens of popular retail brands such as Brooks Brother and Ted Baker, which went belly up during the pandemic.

Shein’s effort to acquire a stake in Forever 21 comes when the company is rumored to be gearing up for a U.S. IPO launch. The company is also facing criticism for abusing U.S. import tariff laws, using underpaid and forced labor in China, and flooding markets around the globe with its cheap quality clothes and accessories that quickly end up in landfills.

These issues have prompted the company to take several steps to clean up its image. For example, it has already moved its headquarters from Shenzhen, China, to Singapore. It has also set a goal of cutting carbon emissions by 25% by 2030, aiming to become the largest purchaser of dead stock fabric globally. Moreover, the company has spent…