**Shein Acquires Majority Stake in Forever 21, Plans to Revive the Fast-Fashion Retailer**
**LOS ANGELES, Calif. -** Chinese e-commerce giant Shein has acquired a majority stake in Forever 21, the fast-fashion retailer that filed for bankruptcy in 2019. The deal, which was announced on Wednesday, will see Shein take over Forever 21’s operations, including its 540 stores in the United States and 240 stores internationally. Shein also plans to relaunch Forever 21’s e-commerce website.
Shein did not disclose the financial terms of the deal, but sources close to the matter told Reuters that Shein paid around $300 million for a controlling stake in Forever 21. The deal is a major coup for Shein, which has been rapidly expanding its global reach in recent years. Shein is now the largest online-only fashion retailer in the world, with sales estimated to be over $10 billion in 2021.
Forever 21, on the other hand, has been struggling in recent years. The company filed for bankruptcy in 2019 after years of declining sales. Forever 21’s troubles were due in part to the rise of online retailers like Shein, which offer similar products at lower prices.
Shein plans to use its expertise in e-commerce to revive Forever 21. The company plans to invest in Forever 21’s website and mobile app, and to expand its product offerings. Shein also plans to open new Forever 21 stores in key markets around the world.
The deal is expected to close in the coming weeks. Once the deal is complete, Shein will become the majority owner of Forever 21. The company’s current CEO, Daniel Kulle, will remain in his role.
**Analysis**
The acquisition of Forever 21 by Shein is a major development in the fast-fashion industry. Shein is now the largest online-only fashion retailer in the world, and the acquisition of Forever 21 will give it a major foothold in the brick-and-mortar retail market.
The deal is also a sign of the changing landscape of the retail industry. Online retailers like Shein are increasingly taking market share from traditional brick-and-mortar retailers like Forever 21. Shein’s acquisition of Forever 21 is likely to accelerate this trend.
It remains to be seen whether Shein will be able to revive Forever 21. The company has a lot of experience in e-commerce, but it has no experience operating brick-and-mortar stores. Shein will also need to invest heavily in Forever 21’s brand and marketing in order to attract customers back to the store.
If Shein is able to successfully revive Forever 21, it will be a major victory for the company. Forever 21 is a well-known brand with a loyal customer base. If Shein can turn around Forever 21’s business, it will send a strong signal that online retailers are here to stay..
