Apparel chain operator Authentic Brands Group (ABG), owner of Aéropostale, Forever 21, Lucky, Barneys New York, and more than 30 other brands, officially dropped its plans for an initial public offering, according to its filing with the Security and Exchange Commission (SEC) and other reports.
The company’s portfolio spans the luxury, specialty, department store, mid-tier, mass, and eCommerce sectors, and it recently acquired a majority stake in former soccer player David Beckham’s brand-management company, DB Ventures LLC, according to reports. The £ 200 million deal gives Authentic Brands a 55% stake in Beckham’s company.
See also: Authentic Brands to Buy Majority Stake in DB Ventures
Although no definitive reason was given for shelving the IPO, a November 2021 report in Retail Dive indicated that the company was planning to hold off its public offering on the NYSE after gaining new investors CVC Capital Partners and HPS Investment Partners.
“We pursued an IPO so that we could bring value to ABG and its shareholders,” a company spokesperson told Retail Dive. “We are achieving exactly that with the onboarding of new equity partners.”
In addition to apparel brands, ABG also owns the rights to Elvis Presley, Muhammad Ali and other celebrity names, as well as the sports media giant Sports Illustrated.
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Authentic Brands CEO Jamie Salter said the company will target an IPO date in 2023 or 2024, according to a CNBC report.
The equity stakes sold to CVC Capital, HPS Investment Partners, and a pool of existing stakeholders, announced by Authentic Brands in November, gave the company a $12.7 billion enterprise value. CVC and HPS will join ABG’s Board of Directors.
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FAQs
Nearly four months after submitting its IPO paperwork in 2021, Authentic Brands sold stakes to private equity firms CVC Capital Partners and HPS Investment Partners in a fundraise that gave it an enterprise value of $12.7 billion.
Where did Forever 21 go wrong? ›
By the time Forever 21 realized the importance of online sales it was too late. Not only was Forever 21 expanding its store fleet too aggressively at the wrong time it was also opening stores that were too large. Some of Forever 21's stores were over 100,000 sq. ft.
Why is Forever 21 shutting down? ›
Retail experts warned the company had failed to grasp the markets outside of the US, per CNBC. Linda Chang, the daughter of Forever 21's founders, admitted the company had taken its eyes off the ball, per Vogue Business. She admitted the brand lost focus on what its customers wanted.
Is Forever 21 made by Shein? ›
Last fall Shein and Forever 21, which is owned by brand management firm Authentic Brands Group, announced a joint venture that has included the sale of Forever 21 gear on Shein, and Shein pop-ups at Forever 21 stores. Now Shein will have a more permanent presence at Forever 21 via this returns partnerships.
What is the most successful IPO of all time? ›
List of the Biggest IPOs of All Time
- Saudi Aramco - $25.6 billion.
- Alibaba Group - $21.7 billion raise.
- Softbank Corp - $21.3 billion.
- NTT Mobile - $18.1 billion.
- Visa - $17.86 billion.
- AIA - $17.78 billion.
- EneL SpA - $16.45 billion.
- Facebook - $16.45 billion.
Price-to-earnings multiple valuation
In this method, the IPO valuation is derived by comparing the market capitalisation of the issuing company to its annual income. This method is mainly used when a company has positive cash flows and all other companies in the industry have a similar growth structure.
Why was Forever 21 sued? ›
The ACLU lawsuit, Fashion 21 v. Garment Worker Center, alleges that the 19 workers sewed, trimmed, and pressed Forever 21 clothing in sweatshop conditions, and were not paid the minimum wage and/or overtime due them under state and federal law.
Who owns Forever 21 now? ›
F21 continues to operate E-commerce and 450 locations across the U.S. along with maintaining a strong brand DNA with consumers and within the fashion industry. In February 2020, Forever 21 came under new ownership made up of Simon Property Group, Brookfield Property Partners, and Authentic Brands Group.
Is Forever 21 making a comeback? ›
But as online spending has died down, Forever 21 is one of many brands reinvesting in brick-and-mortar retail. The 14 new stores are different than the sprawling, multi-floor experiences that Forever 21 is known for, as the brand is trying to avoid the mistakes of the past.
Does Shaquille O'Neal own Forever 21? ›
In addition, Shaquille O'Neal is the second-largest individual shareholder of Authentic Brands Group, making him one of the owners of Forever 21, Barneys New York, JCPenney, Reebok, Vince and Hunter Boots. ABG is led by CEO Jamie Salter.
Forever 21 is a multinational fast-fashion retailer headquartered in Los Angeles, California, United States. Originally founded as the store Fashion 21 in Highland Park, Los Angeles in 1984, it is currently operated by Authentic Brands Group and Simon Property Group, with about 540 outlets. Forever 21, Inc.
Is Forever 21 accepting Shein? ›
Fast fashion meets faster returns. Forever 21 has teamed with the fashion brand Shein to alleviate shoppers' return headaches.
How much is authentic brands group worth? ›
In July 2021, ABG filed for an estimated US$1.5 billion initial public offering. In November 2021, AGB withdrew its IPO, selling private stake in the company to CVC Capital, HPS Investment Partners, and other current stakeholders at a company value of $12.7 billion.
Is Authentic brands a publicly traded company? ›
Authentic considered going public in 2021 but withdrew its IPO filing the following year.
What was the IPO for the real real stock? ›
Announces Pricing of Initial Public Offering. SAN FRANCISCO, CA, June 27, 2019 — (GLOBE NEWSWIRE) —The RealReal Inc. (“The RealReal”) today announced the pricing of its initial public offering of 15,000,000 shares of its common stock at the initial public offering price of $20.00 per share.
Is Authentic Brands profitable? ›
By the numbers: Authentic is generating nearly $30 billion in sales at retail globally, Salter said. It also generated $1.17 billion in EBITDA in 2023 compared to the $800 million it generated in 2022, Salter said at the conference.
