Forever 21 is a popular American fast-fashion retailer that offers trendy clothing and accessories for men, women, and children. Founded in 1984 by South Korean immigrants, Do Won Chang and Jin Sook Chang, the company quickly grew to become a global brand with over 700 stores worldwide. Despite its success, many people wonder who owns Forever 21.
The Founders
Do Won Chang and Jin Sook Chang are the original founders of Forever 21. Do Won Chang was born in South Korea in 1954 and moved to the United States in 1981. He worked multiple jobs, including gas station attendant and coffee shop employee, before opening the first Forever 21 store in Los Angeles in 1984. Jin Sook Chang, his wife, was born in South Korea in 1962 and is the current CEO of the company.
Ownership Structure
Forever 21 is a privately held company, which means it is not publicly traded on the stock market. The Chang family owns 100% of the company, with Do Won Chang serving as the Executive Chairman and Jin Sook Chang as the CEO. Their two daughters, Linda and Esther, also hold executive positions within the company.
In 2019, Forever 21 filed for bankruptcy, citing declining sales and rising competition from online retailers. The company was eventually sold to three companies: Authentic Brands Group, Simon Property Group, and Brookfield Property Partners. However, the Chang family still owns a significant stake in the company and is involved in its operations.
Controversies
Forever 21 has faced several controversies over the years. In 2001, the company was sued for allegedly copying designs from a small designer. In 2012, the company was criticized for selling shirts with the phrase "Allergic to Algebra." Many people saw this as perpetuating negative stereotypes about girls and women in STEM fields.
Additionally, Forever 21 has been accused of unethical labor practices. In 2012, the U.S. Department of Labor found that the company had violated minimum wage and overtime laws. In 2016, the company faced a class-action lawsuit for allegedly underpaying workers and denying them breaks.
Conclusion
Do Won Chang and Jin Sook Chang are the original founders of Forever 21 and still own a significant stake in the company. Despite facing controversies and a bankruptcy filing, the company remains a popular destination for fashion-conscious shoppers around the world.