Sparc Group Holdings, the joint venture between Authentic and mall operator Simon Property Group, partnered with Shein, the Chinese e-commerce platform, to support the company’s Forever 21 business.
Sparc also oversees sourcing, manufacturing, branded stores, e-commerce operations, and wholesale distribution for Reebook, Aéropostale, Eddie Bauer, Brooks Bros., Nautica, and Lucky Brand.
Authentic and Simon Property each own half of the business.
Under the agreement, Shein acquires an approximately one-third interest in Sparc Group while Sparc Group becomes a minority shareholder in Shein.
The partnership is expected to expand Sparc Group’s distribution of Forever 21 to Shein’s platform, which it said has 150 million online users.
The partnership also offers the opportunity to test Shein’s customer-focused experiences in Forever 21 U.S. locations, including shop-in-shops, enabling a return to store and other initiatives.
Sparc acquired Forever 21, which has over 540 doors, out of bankruptcy proceedings in 2020. The announcement did not disclose the financial terms of the deal.
“We are excited for the partnership with Shein as it reflects our shared vision of providing customers with unparalleled access to fashion at affordable prices,” said Marc Miller, CEO of Sparc Group. “By working together, we will provide even more innovative and trendsetting products to fashion enthusiasts around the world.”
“Shein is thrilled to have Sparc Group as a partner and minority shareholder, and we look forward to finding new ways to delight our customers through the potential of this partnership,” said Donald Tang, Shein’s executive chairman. “The powerful combination of Simon’s leadership in physical retail, Authentic’s brand development expertise, and Shein’s on-demand model will help us drive scalable growth and together make fashion more accessible to all.”
“We are very pleased to welcome Shein as a strategic partner and shareholder in Sparc Group. Shein is the world’s leading online fashion platform, delivering style and value around the globe. We are looking forward to working together,” stated Jamie Salter and David Simon, directors of Sparc Group.
Photo courtesy Forever 21
