Shein acquires third of Forever 21-owner SPARC

Shein has partnered with SPARC Group, acquiring around one third of the company.

SPARC Group, which owns Authentic Brands Group and Simon’s Property Group, will become a minority shareholder in Shein.

Under the agreement, Shein will provide the company with a platform to further grow its brands, which include Forever 21, Eddie Bauer and Nautica.

Shein will also test customer-focused experiences in Forever 21 locations across the US including shop-in-shops, enabling return to store and other initiatives.

"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."

Earlier this year a bipartisan group of US lawmakers called on the Securities and Exchange Commission (SEC) to halt the initial public offering of the fast fashion giant until it resolved accusations of forced labour.

A number of reports, including a 2022 expose from Bloomberg, found that many of its garments contained cotton from China’s Xinjiang region – a controversial part of the country where the government has been accused of forced labour and internment of the Uyghur people.

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