Sparc Group Holdings II LLC (New York), owner of fast-fashion retailer Forever 21, is entering a strategic partnership with online marketplace Shein (Singapore). The partners say the deal is focused on meeting the needs of customers seeking affordable, high-quality fashion.
As part of the joint venture, Shein will acquire about a third of Forever 21 operator Sparc. Sparc, in turn, will take a minority stake in Shein.
“We are excited for the partnership with Shein as it reflects our shared vision of providing customers with unparalleled access to fashion at affordable prices,” said Sparc CEO Marc Miller. “By working together, we will provide even more innovative and trendsetting products to fashion enthusiasts around the world.”
Shein Executive Chairman Donald Tang said: “Shein is thrilled to have Sparc Group as a partner and minority shareholder and we look forward to finding new ways to delight our customers through the potential of this partnership. 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.”
Both companies have been the source of controversy due to the environmental impact of their fast-fashion production and allegations of unethical labor practices. Earlier this month, for example, a Shein pop-up at a Cincinnati mall was the target of protesters chanting “low prices, lower morals.”