Forever 21 is to be acquired by Authentic Brands Group (ABG), Simon Property Group, and Brookfield Property Partners, with the trio forging a strategic partnership to purchase the US teen fashion retailer.

Under the terms of the US$81m deal, ABG and Simon Property Group will each own 37.5%, while Brookfield Property Partners will own 25% of the intellectual property and operating businesses.

It is expected that Forever 21 stores will continue to operate across the United States and international territories, with the brand’s new owners to oversee the continued operation of its headquarters in Los Angeles and maintain its e-commerce business.

Forever 21 will convert its current, owned store operations in Central America, South America, Mexico, the Philippines, and the Caribbean to a licensed partnership model.

In addition, the new ownership group will work with existing and new partners to expand Forever 21 across “key territories”, including South America, Western and Eastern Europe, China, Southeast Asia, Middle East, and India.

“Forever 21 is a powerful retail brand with incredible consumer reach and a wealth of untapped potential,” says Jamie Salter, founder, chairman, and CEO of ABG. “We’re looking forward to working with the F21 team and our global partners. Together, we’ll revitalise the brand’s core business and connect with audiences around the world through new product offerings and experiences.”

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The acquisition, the financial terms of which were not disclosed, boosts the value of ABG’s brand portfolio to US$12.5bn in global annual retail sales.

It follows the completion of ABG’s purchase of luxury business Barneys New York in November of last year. The global brand development company also owns labels including Volcom, Camuto Group, Juicy Couture, Aeropostale and Nautica.