Aditya Birla Fashion and Retail, an Aditya Birla Group company, has acquired the rights for global fashion chain Forever 21 in India from the current franchisee Diana Retail for an undisclosed sum.
Forever 21 had a three year old tie up with DLF Brands and wanted to exit the partnership for a much aggressive play in the country. Earlier, Myntra was also reported to be in talks to buy the rights of Forever 21.
The acquisition includes Forever 21’s its exclusive online and offline rights for Indian market and its existing store network in India, Aditya Birla Fashion and Retail said in a press release on Wednesday.
Forever 21 is among the fastest growing fashion retailers in the world with a large network of more than 700 stores worldwide.
“The proposed acquisition is in line with our strategic intent to create the largest integrated branded fashion player in the country. With the acquisition of Forever 21 India business, we aim to create a strong foothold in the womenswear business in the western wear segment,” Pranab Barua, Managing Director, ABFRL said ahead of the acquisition.
“Currently, the western womenswear segment is growing at more than 20 per cent. The proposed acquisition will further strengthen leadership position of ABFRL in the branded fashion space,” he added.
Forever 21 expects that its partnership with ABFRL will help establish it as one of the largest womenswear brand in the country.
“The young demographics of the country and emergence of fast fashion segment offers opportunity for rapid growth for the brand,” Jatin Malhotra, Director, Global Expansion, Forever 21 said.
Founded in 1984, Forever 21 operates more than 730 stores in 48 countries with retailers in the US, Australia, Brazil, Canada, China, France, Germany and others. Forever 21 has brands like Forever 21, XXI Forever, Love 21 and Heritage in its portfolio. (SH)