US fast fashion retailer Forever 21 has sold its Indian business to Aditya Birla Fashion and Retail Limited (ABFRL) in a deal worth $26m (£20.1m)
ABFRL, which owns 145-store chain Pantaloons in the region, bought the business from Forever 21’s franchise partner Diana Retail.
Pranab Barua, managing director of ABFRL, said the acquisition was “in line” with its intent to become the largest fashion player in India.
“With the acquisition of Forever 21 India business, we aim to create a strong foothold in the womenswear business in the western wear segment. Currently, the western womenswear segment is growing at more than 20%,” he added.
Jatin Malhotra, director of global expansion at Forever 21 added: “Forever 21 has built a very strong franchise in India in the last few years and has already become a brand of choice for fashion-conscious women. The young demographics of the country and emergence of fast fashion segment offers opportunity for rapid growth for the brand. The partnership will help establish Forever 21 as one of the largest womenswear brands in the country”.
Last month, British womenswear brand Izabel London announced it was entering the Indian market through Pantaloons.
In the UK, Forever 21 runs its own operations and is reviewing its entire UK store portfolio as it continues to struggle in the competitive British market.