Sears Holdings has signed a long-term lease with Forever 21 to occupy approximately 43,000 square feet of its retail store at South Coast Plaza in Costa Mesa, California.

The remaining space at the Sears' store will continue to offer its full assortment of products and services, a statement said.

"Sears Holdings is very excited to welcome Forever 21 to our property at South Coast Plaza," said Alan Shaw, vice president, leasing and development for Sears Holdings. "Forever 21 is a world-class retailer and will provide energy and excitement to the northwest quadrant of South Coast Plaza, benefiting all the retailers in this area of the shopping centre, including Sears. They will be a wonderful tenant and are an ideal fit for this store location."

Larry Meyer, Forever 21's executive vice president said: "We are pleased with the opportunity to serve the customers of the greater Costa Mesa area with our new XXI flagship store at South Coast Plaza."

"This agreement is a great example of Sears Holdings selectively redeploying its asset base to improve the retail experience for consumers while working to create long-term shareholder value," said Jeff Stollenwerck, president, real estate for Sears Holdings.