Shein acquires Forever 21

Chinese company Shein has acquired one third of the shares of Sparc Group, the parent company of the US chain Forever 21, enabling Sparc Group to become a minority shareholder in Shein. Being two very different fast fashion brands - Shein's business is mainly based on online retail, while Forever 21 has reached the pinnacle of success through a strong presence in major US shopping malls - this deal represents a shift in Shein's relationship with the US, increasingly exacerbated in recent months. 

The acquisition plan, outlined in a press release shared by both companies, will provide both companies with several benefits: Forever 21, which filed for bankruptcy in 2019, will begin to gain more visibility on Shein's website, which reports over 150 million active users. The Chinese fast fashion company, on the other hand, will be able to place its products in the physical stores of the US company, thus gaining amplifying its commercial positioning in the US.