Shein acquires stake in Forever 21’s parent company to create fast fashion alliance
As part of a new partnership agreement, Singapore-based fashion retailer Shein is purchasing a one-third stake in Sparc Group, which is based in the US.
According to an unnamed statement, Sparc Group, which owns the fashion label Forever 21, will acquire a minority stake in Shein.
Through Shein’s online platform, the partnership will improve Forever 21’s brand distribution and broaden its market. On the other hand, it will enable Shein to sell its goods in Forever 21’s physical stores throughout the US.
A partnership between Simon Property and Authentic Brands led to the establishment of Sparc Group in 2017. It also distributes goods from companies like Brooks Brothers, Eddie Bauer, and Reebok in addition to Forever 21.
Shein, meanwhile, was founded in China in 2008. 150 million users are currently served globally.
In May 2022, the company opened its marketplace in the US. But earlier this year, a number of people and organizations launched a campaign to demand the closure of Shein in the US, citing numerous wrongdoings at the fast-fashion company.
Additionally, Temu, another Chinese online marketplace, has accused it of using exclusivity agreements to prevent manufacturers from working with Temu.
