Amanda (56:52)
A month, with two of them surrounding education or a personal note from the founder. Again, that's deco denim.com Forever 21, despite bringing in more than $4 billion in sales at its peak, all while employing 43,000 people worldwide, remained privately owned and family run for decades. And many analysts say that this insular approach to running the company was actually its downfall. But in the midst of the 2008 financial crisis, Forever 21 was practically printing its own money. While at Urban Outfitters, we were slashing prices and budgets. In 2005, Forever 21 had enough capital to buy mall chain gadzooks. And so 2008 rolls around, and they are just like in every mall. It also launched its own chain of freestanding accessory stores called for love. And Forever 21 was outshining every other retailer in the United States. Forever 21 was benefiting from a few things that were happening at that same time, right? Yes, there was the recession, but even before, it was benefiting from other sort of social and cultural trends. One was that millennials were, you know, collectively broke, but they were inspired by media to have lots of new outfits. Forever 21 meant you could have a lot of clothes for very little money, essentially just for your outfit of the day post. And like I said, we were already sort of like, we don't really need to wear clothes more than once now. That's how. That's how we are. And Forever 21 was great for that approach. Furthermore, I just want to remind you again, because these stores were so massive and they were jammed with so much product, there really was something for everyone, with a caveat, if you could fit into their clothes, right? But if you could fit into their clothes because they ran small and inconsistent and weird, but if it happened to work enough for you, you could probably find something in any aesthetic for you. But even more important, and this was like, I swear this was planned because this fed fast fashion so much. And it may have been also that, like, the magazines were sort of like, oh, it seems like this fast fashion thing is becoming bigger and we need to take their money. How do we do this without losing all of our cachet? It could have been that too. But high low dressing was being pushed by magazines and blogs alike. What was high low dressing? Well, it was exactly what it sounds like. Mixing low cost fast fashion with high end, far more expensive clothing and maybe, you know, also some really well curated vintage. And I gotta say, it's super interesting to me as a phenomenon, as a trend that lasted for a really, I mean, quite a few years. I think, I think it still exists, honestly, because, you know, I've said this here before and it has been the thinking for a long time. It has certainly launched a million think pieces on the Internet. But there was this idea, this conceit going around that fast fashion was democratizing style, meaning it allowed anyone, as long as the clothes were made in their size, to have strong personal style. But what it really meant was it allowed everyone to just buy lots of clothes and only wear them a few times. That's what it really meant, I think when we talk about democratizing style and, and giving fast fashion the credit for that. But we're really saying is it made it more possible for more people to just buy too many clothes and wear them very briefly, right? And then like, you know, post about it on social media and kind of normalize the idea for their friends of buying too many clothes and only wearing them a few times. Right? So not necessarily a good thing, this democratization of style, at least through the lens of fast fashion. I think that social media and street style blogs and just style blogs as a whole, and people posting their outfits did show that anyone of any size, of any income, of any age can have their own personal style. And we still see that going strong now. And I love it, but I don't want to give that credit to fast fashion. Furthermore, no matter how much someone wants to say that fast fashion democratized style, there is a stigma associated with low cost fast fashion, period. And I'm here to say that to you that if you think people are not judging your Shein dupe dress of something more expensive, they 100% are. Because there will always be classism and exclusivity baked into fashion. Right? It is an industry that is all about aspirational wealth. And so therefore, if anyone can tell that you are wearing something inexpensive, something from Forever 21, something from Shein, something from a store at the mall, they will most certainly judge you for it. And so here we are, we're back in time right now, right? It is the 2000s and we start to see magazines and blogs pushing this concept of high, low dressing. And I want to be clear as we talk about this more and I give you examples and I talk about how it really did fuel fast fashion. It didn't fuel fast fashion for people who had less money and could only afford fast fashion. Meaning at this point, mostly forever 21. It didn't empower those people. And it wasn't about those people, myself included in that economic group. What it did is it legitimized this idea for people who had the money to buy the high part of it too, the expensive stuff, right? And if you were just out there wearing head to toe, Forever 21, people would judge you because that is what fashion is. Fashion as it exists is so classist. And that's why I always talk about how I want slow fashion to be the opposite of that. But here we are, we're finding that the entire like fashion media landscape in the 2000s is saying, hey, it is not only acceptable, but really cool to mix high end stuff with this low price point fast fashion. And what it really did was drive new customers to fast fashion. People who would have never dared step into a Forever 21 because they wanted to be a part of this trend, this trend that told you that, that really stylish people mix the top and the bottom and they do it so well. So this was a boon for fast fashion. Right? It got more people in the doors of Forever 21, for example. But it didn't necessarily erase the classism baked into fashion. Nylon magazine, which was definitely like the coolest magazine of that time, it would show you how to pair a Forever 21 dress with thousand dollar shoes and a fur coat. Vice paired Comme des Garcons with Canal street knockoff gold jewelry. Bloggers like Agnes of Style Bites mixed up H and M with vintage and indie designers. And street style blogs captured people doing this in their own way. The idea was that it was totally acceptable and encouraged to mix low price, fast fashion with high end, expensive designer stuff. Even at Urban Outfitters we were on, we were bringing a lot of expensive clothing and trying to do collabs with designers. But we, I remember specifically this is when I was working in shoes. We went on a fool's mission. And I mean, it was a fool's mission because this initiative was a flop. We went, I remember this trip, we went to New York all day and all we did was meet with really expensive shoe brands. Like we were looking to bring in shoes in that like $500 and up price range that would be in select stores so we could show that we also were a high, low place. And let me tell you, I remember that day being so miserable because every showroom was like why would I work with you? Like you guys steal designs, you sell crappy, low quality stuff at high prices and you want me to sell shoes in your store so that you can copy them later. And to be fair, I get does feel weird to sell your $500 shoes to sit next to the $58 shoes that are probably a copy of someone else's $500 shoes. I get it. And also at that time our shoes were we were made using a lot of the same vendors as Forever 21. So it would be almost like putting your high end shoes right next to some Forever 21 shoes. And and they were not there for that. On the subject of shoes, when I shared this post about Forever 21 a few weeks ago, Liz Black commented that she had written a story for HuffPost back then about a crappy pair of shoes she bought from Forever 21. And I'm going to share that in the show notes because I have such a visceral memory of reading that article from the HuffPost at my desk at Urban Outfitters world headquarters in Philadelphia, Pennsylvania in the Navy Yard the day it came out. And I am fairly certain the shoes she was talking about, I I'm pretty sure I know who made them. Once again, we shared a lot of the Same vendors with Forever 21, at least in shoes at that time. So yeah, so we've got this high, low dressing, we got millennials being broke. We've got but the emergence of social media and like street style blogs and party photo blogs, all of this stuff coming together to say like, hey, you need to have a look all the time and you need a new look all the time. Right? So this is all working. This works in the favor of Forever 21. And here it was like Forever 21 was killing it. Like I said in an urban we were getting yelled at every day. So soon some of the most talented creatives at Urban Outfitters were defecting to Forever 21, swapping cold Philadelphia winters for constant sunshine in LA. And a few years into my buying career, I felt like I needed to leave Philly and Urban Outfitters for like many reasons. I was so unhappy in every single way and there was no one to date there and I hated the weather and the company was never going to pay me Enough money and I was always going to feel like an outsider there. And when I saw a job posting for Forever 21 that seemed like a perfect fit, I was like, huh, Should I go for it? Because a former coworker at Urban who worked over in Women's had made the shift to Forever 21 about a year before and rumors were that she made a lot more money and she was having the time of her life. So I emailed her asking how the transition had been and her response was very odd. She said, I can't talk about this via email. I will call you after work tonight. And I was like, okay. She called me very late that night. It was about 8pm in LA, which was a red flag in itself. Sorry I couldn't email you back because they read our emails. We aren't allowed to say anything negative about the company or we'll be fired. She had just left work for a few hours and she was going to teach a yoga class for extra money, then returned to the office. They paid her so little that she had to teach yoga every day and pick up other extra work on the weekend. The hours were grueling. Most days she had meetings at work at 6 or 7am and she would be there until close to midnight. The environment was hectic, stressful and often nasty. She ended it with, I'm glad I'm in la, but I miss how easy Urban was in comparison to this. Well, I didn't apply for the job, but over the years I met many people who had begun their career at Forever 21. Basically, once you get into this like fashion system, right, you start to realize that a lot of people have worked for the same bad companies that kind of churn and burn people. And when I moved to LA and was working there, I met a lot of people who'd started their careers either at Forever 21 or BCBG or Guess, and they all had nightmare stories like these were the really toxic places to work. The stories I heard about Forever 21 were definitely the worst. Everyone had really bad things to say of being only allowed to take red eye flights to trade shows, being forced to share rooms with co workers on trips, which let me tell you, is the worst, and always being expected to come into the office for a full day of work. After that red Eye flight landed at 5am, the pace was frantic and no matter how hard you worked, if Mrs. Chang didn't like you or something you wanted to buy, you were fucked. All decisions passed through Mrs. Chang and if she wanted you at work at 6am or 10pm to review potential new styles. You were there at the office friends and vendors, because remember, I shared a lot of vendors with them. They also told me stories of meeting rooms with Bibles, which didn't surprise me because the underside of Forever 21's painfully and iconically bright yellow shopping bag said John 3:16, which is a reference to a Bible verse. And I'm going to tell you today, for the first time ever, I looked up what that verse is. It is for God so loved the world that he gave his only son that whoever believes in him should not perish but have eternal life. I'll just say getting all biblical. That's a choice for a company that most likely exploited a ton of workers around the world to make $1.90 tank tops and oh my God has contributed to some landfills. But such is humanity, complex and sometimes hypocritical. Forever 21 was just one of many companies, including Urban Outfitters, that underpaid and overworked buyers and designers until they essentially broke. Those that came from more privileged backgrounds might launch their own brand or open a boutique, and the rest of us just moved from one bad job to another. That said, there was a period where even a fashion professional like myself, with all of my fashion industry trauma, could look at Forever 21 and their product concepts and their store merchandising and their brand partnerships. Except for that really weird collab they did with the US Postal Service. Still scratching my head on that one. But I could look at all of that and I could say, you know, they really are doing this well. You had to give them credit for making themselves an iconic part of millennial culture. They managed to catch every single trend. Hi, a collab with Taco Bell. And then they would have it in their stores, which, listen, I get that Shein does every micro trend all day, every day now, but they don't have to make the stuff and fill hundreds of stores with it and do it in some way where it looks kind of organized and makes sense in the store. I mean, this is an accomplishment. Somehow Forever 21 got it into the hands of its customers faster than anyone else. And a lot of this was based on strong relationships with factories in China, along with a brutal work culture. And over the years, Forever 21 was in every mall, even the small rural ones. In bigger markets, they took over entire department stores like their anchor spots, along with empty Borders locations, which, if you don't know Borders, let me just say massive bookstores with a cafe where I spent my teenage years feeling very cool. They take these huge stores and turn them into Forever 21s. And filling those stores was a challenge. In fact, years later, as they filed for bankruptcy in 2019, Linda Chang, the executive vice president of the company expected to be her father's son successor, told the New York Times, having to fill those boxes on top of having to deal with the complexities of expanding internationally did stress our merchant organization. Basically, the company needed to spend a lot of money to fill those stores and over time there were just too many stores in dying malls that still needed to be full of new stuff. And meanwhile, the company wasn't really making the pivot to E commerce. In fact, the Changs were reluctant to hire anyone outside their insular world, even if those new hires might bring much needed insight and expertise. And as a person who has worked for some CEOs with some major hubris and big time ego who made bad decisions about their companies, well I'm not surprised to hear this. Former employees told media outlets that many of the Chang's hires were from their church or extended family with little to no experience in anything they are responsible for managing. Eric Gordon, a management expert at the University of Michigan Ross School of Business, told the New York Times in 2019 regarding Forever 21 and its private ownership. On the founder side, this hubris thing is pretty common, but it's particularly deadly if you've already been successful. For a long time they didn't have a board of directors to give them a reality check and they didn't have equity and analysts to give them a reality check. You can live in your self created bubble for a lot longer but then the bubble pops. And reading that quote really actually you know what it gave me flashbacks to Nasty Gal which was in a very similar situation, early success that no one really learned anything from. And so as things got more difficult the wrong people were brought in to fix things and so nothing was fixed. And then Nasty Gal went bankrupt and things were amazing for forever 21. For a long time they expanded into men's and kids. They led the charge into plus sizing which was like so fucking smart of them. And in the late aughts they launched a brand that was designed to be a more premium version of Forever 21 called called Heritage 1981. It was kind of like you put Abercrombie, American Eagle and Free People into a blender. Most of the clothing was made of natural fibers unlike what you would find at Forever 21. The stores had like faux weathered wooden doors and wood framed windows, hardwood floors, quasi vintage Art on the walls. The merchandising was sort of a watered down version of a free people store. Please, someone raise your hand if you remember this place. I kind of can't believe it wasn't more successful, but I think it may have been that they were just throwing too much at the wall with the accessory stores and taking over all the gadzooks and doing this heritage 1981 and opening stores more and more everywhere all the time. I just think it was too much and nothing got to really succeed. In 2017, the company launched Riley Rose, which was a beauty concept. It was filled with a mixture of leg makeup brands and then Forever 21 makeup and accessories. Kind of a high, low concept for beauty. And the stores looked great. I visited one that was across the street from Penn Station and I was like, wow, this is sick. This is great. I think this is going to be really successful. It seemed like such a good idea in a Sephora world, but it just didn't work. With the Forever 21 business model. The company was used to getting any product cost it wanted. And the makeup companies were like, actually, that's not how it works. Because, spoiler, if you buy branded beauty products, like wholesale and sell them in your store, the markup is very small, right? And that doesn't work in a Forever 21 model where everything is highly profitable. So Riley Rose was trying to squeeze brands on pricing. And what happened is they lost a lot of these brands pretty fast. And more and more of the Riley Rose stores just became Forever 21. Stuff just didn't work. And actually that year 2017 was pretty bad for Forever 21. Riley Rose was kind of a flop. The company's international expansion was a disaster because no one did any research into local norms. For example, like knowing that most stores are closed on Sundays in Germany. There they were open. No one wanted to work there, no one wanted to shop there. It was a bad look. At the same time, Zara and H and M were doing fast fashion in a better way than Forever 21. All around the world, you know, H and M was starting to talk about sustainability. Zara was just really killing it from, like an aesthetic and product curation perspective. Forever 21 was doing neither of those things. And somehow to make it all worse, the company bought too little inventory that year. So they were never going to hit the sales plan they needed to hit in order to keep the business running. Then the next year, the pendulum swung the other way. They bought way too much and they bought the wrong stuff. I was reading this new York Times article about the bankruptcy and whoever they were talking to from the company, I think it was a former employee who was sort of like Anonymous was saying, like we didn't pick clothing based on category. We weren't like, oh, we need tops and dresses and pants. We did it more by like concept, like going out, date night work. And so we weren't really like assorting properly. And this did kind of blow my mind because that is exactly not how you want to plan a product assortment, especially one as big as Forever 21s. So yeah, things are really bad. And by 2019, the company owed $347 million to its vendors. You know, I'll say, when I moved to the Highland park neighborhood in LA, it was probably like 2013ish. I lived near the original Forever 21 store, the first location ever whose sign still to this day said said Fashion 21. And it felt like a pilgrimage of sorts. Like this was a place that is entangled in my memories that is sort of like an iconic millennial phenomenon. And you know, from a professional perspective, it's fascinating right inside it felt like any store at the mall. And it smelled strongly of plastic. And either the magic wasn't there anymore or I was no longer susceptible to it, but that's kind of like what was happening to Forever 21. It just, it didn't mean very much to anyone anymore. When Nasty Gal went bankrupt and I became unemployed, I applied for all of the retail companies in LA because let me tell you, I was so happy living in la. I had the most awesome friends. I did so much cool stuff. I had this awesome boyfriend named Tustin. We did cool stuff together all the time. And I just really felt constantly inspired and motivated by the city and all the amazing people living in it. So I did not want to leave la. I applied for everything. Ross Dress for Less, Guess, Lucky jeans, and even Forever 21. And a month later, I was in final interviews with Ross, Forever 21 and a startup in Portland called Wildfang Dustin. Then my fiance and I, we weighed our options. We didn't want to leave LA because we loved it, but we also didn't want me to work at Forever 21. And Ross was super corporate and I might have to wear business clothes, which I did not own. Wildfang meant leaving la, but it might be cooler. And so I ended up taking that job in Portland and going to work at Wildfang, which ultimately was the worst job ever. People ask me to comment on Wildfang all the time, and I'LL just say, don't you think it's pretty interesting that I've been working on Clothes Horse for almost five years and I've never encouraged you to shop at Wildfang or done a partnership with them or shouted them out anywhere, ever. Because if their marketing was what they say they were, wouldn't I be like, on top of that? I mean, I was their director of merchandising for several years. Of course I would be hyping Wildfang anyway. It's hard to say if working at Forever 21 would have been worse. At least I wouldn't have been able to stay in LA. At some point, though, I kind of forgot about Forever 21. And last year I was working on a series about Shein, and this forced me to spend time scrolling the Shein site. And wouldn't you know it, the most expensive clothing for sale on the Shein website was from Forever 21. Desperate to be saved from bankruptcy, Forever 21 had partnered with the company that was destroying it once and for all. I laughed and I laughed just thinking about Forever 21 being the more expensive brand of the two. And then I felt sick, because then I was thinking about how Forever 21 had convinced an entire generation of millennials that clothing could be disposable. And here was Shein doubling down on that, introducing new generations to even cheaper, more disappointing clothing. But this partnership was all part of Forever 21's plan to save itself. Get ready for a rapid fire of companies being involved in owning Forever 21. Okay, are you ready? After, by the way, decades of it being family owned. In 2020, the company sold all of its assets to three different companies. Simon Property Group, which my friend who works in mall real estate always calls a mall slumlord. And it had a lot to lose if forever 21 closed all of its stores. Brookfield Property also had a lot to lose if all of those stores closed. And Authentic Brands Group, which buys all kinds of brands and then licenses the rights to other manufacturers to use the brand names. Seriously, go to Wikipedia and search Authentic Brands Group. And look at this list. It's like Elvis and Marilyn Monroe. And Aeropostale, Billabong, Barney's. Gosh, have I ever told you how when I was at Nasty Gal, the goal, at least for a while, was to make Nasty Gal be Barneys for millennials. The hubris. The hubris man. Anyway, Barneys, Eddie Bauer, Fry, Ted Baker. So much more. And what happened is a new joint venture between Simon and Authentic Brands called Spark. Not to be confused with Sparks, the caffeinated malt liquor beverage. Spark took over the management of Forever 21 and Brookfield sold its stake in Forever 21 in 2021. And then in 2023, Shein and Spark Group entered into a joint venture where Spark bought a stake in Shein and Shein bought a stake in Spark. And so that makes Shein part owner of Forever 21. Despite all of that, business just kept dying for Forever 21. Too many leases and dying malls, an inability to compete with online retailers like Shein and Temu and Amazon, who were bringing Clothes Factory direct to customers at much lower prices. And also just something to be said here, the name Forever 21 is not cool. And it feels super antiquated in 2025, right? Like it's just not appealing to anyone on any level. Right? And, and I think it feels like a relic of a past that, that we're not into right now. The name, the aesthetic, the way the stores looked, the yellow bags with the Bible verses, everything about it just feels like a time capsule that no one's interested in. And forever 21 never evolved beyond that. The stores always looked the same, the bags always looked the same, the way it sold itself always looked the same. And it just became out of date, antiquated. And now this year, Forever 21 is officially done. No, I won't miss Forever 21, even if it is tangled up in my memories. But like many of us who worry about the future of our planet and its people, I will continue to spend a lot of time thinking about how Forever 21 changed our habits and the entire business of making and selling fashion. It opened the door for ultra fast fashion like Shein. It let us buy new clothes constantly, knowing that we would only be able to wear them a few times. And we got used to it. It offered us prices that were unnaturally low and the math never mathed. And at first it felt weird to us until eventually it became normal. Now we have to do the hard work of undoing that. And I know we can, but it will not be easy and we gotta put in the work. Thanks for listening to another episode of clotheshorse. If you liked what you heard, you know Leave a rating A review. Subscribe. Tell your friends you know all the things. If you'd like to support my work financially, there are many ways you can do that. You can find links for all of that in the show notes and in my profile on like all of the social media platforms including Instagram threads, TikTok, Bluesky, Substack, Tumblr and even Pinterest. So go find me on the Internet on your platform of choice. The Merch store is always open 247 and you can find that@clotheshorsepodcast.com and of course, thank you as always to my other half, Mr. Dustin Travis White for our music and audio support. It Bye.