In the deal, Shein acquired about one-third of Sparc Group, which owns Forever 21 through a joint venture that includes Authentic Brands GroupSimon Property Group

“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,” Shein’s executive chairman Donald Tang said in a statement.

Shein, which sells some of its fashion products for less than $5, has quickly risen to prominence in the ultra-low-priced apparel market, unseating brands like Forever 21 and Charlotte Russe that were popular in the early 2000s. 

The retailer, which produces the majority of its products in China, has faced scrutiny in the US as lawmakers question its opaque supply chain and use of forced labor. There are also ongoing concerns about its carbon emissions due to the sheer volume of low-cost clothing, often made from polyester, that it produces annually. 

Forever 21, which had 800 stores at its peak and relied on a mall-based strategy, struggled as more shopping moved online. It was acquired out of bankruptcy in 2020 by a consortium of brands including Simon Property and Authentic. The partnership with Shein could be a way for it to expand its online reach and get its name in front of Gen Z shoppers, who are Shein’s most loyal customers.