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Forever 21

OVERALL

Owned
USA
Rating
Criticisms

Youth fashion

Founded in California in 1984 by CEO Don Chang and his wife. About 60% of its apparel is manufactured in China. Operates about 500 retail stores around the world. Filed for bankruptcy in 2019 and acquired by Authentic Brands Group, Simon Property Group and Brookfield Property Partners in 2020. Forever 21 entered Australia in 2014, but left in 2017.

Company Ownership

Forever 21 Inc   USA     website   email      
  SPARC Group LLC   
   owns 100% of Forever 21 Inc  
USA     website   email      

Retail

Joint venture between Simon Property Group, a retail real estate company and Authentic Brands Group, a brand development company. SPARC stands for Simon Property Authentic Retail Concepts.

      Simon Property Group Inc   
       owns 50% of SPARC Group LLC  
USA     website      facebook   twitter

Real estate investment trust

The largest owner of shopping malls in the United States.

      Authentic Brands Group LLC   
       owns 50% of SPARC Group LLC  
USA     website   email      

Brand development and licensing

Purchases brands in the sports, celebrity and fashion categories and licenses the intellectual property to leading retailers, wholesalers, and manufacturers worldwide. Acquired Juicy Couture in 2013, Tretorn in 2015 and Nautica and Nine West in 2018. Bought Van Heusen, Arrow and Izod from PVH, and Reebok from Adidas in 2021. Private equity firms BlackRock, CVC and HPS own significant stakes.

         BlackRock Inc   
          owns 30% of Authentic Brands Group LLC  
USA     website         

Asset management

World's largest asset manager, with about $7 trillion in assets under management.

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
Forever 21 Inc
Social Workers rights in USA
In 2012 the U.S. Department of Labor said it found widespread 'sweatshop-like' labor violations in downtown LA's fashion district, resulting in the recovery of more than $326,200 in back wages for 185 employees. The garments being produced by violators were destined for sale at more than 30 retailers nationwide, including this one.
Source: US Dept of Labor (2015)
Social 3/100 in 2022 Ethical Fashion Report
Baptist World Aid Australia's '2022 Ethical Fashion Report' assessed 120 companies on their efforts to mitigate against the risks of forced labour, child labour and worker exploitation in their supply chains, as well as protect the environment from the harmful impacts of the fashion industry. Assessment criteria fall into five main categories: policy & governance, tracing & risk, auditing and supplier relationships, worker empowerment and environmental sustainability. This company received a score of 3/100.
Source: Baptist World Aid Australia (2022)
Business Ethics 7/100 in Fashion Transparency Index
The 2020 Fashion Transparency Index reviewed 250 of the world's largest fashion brands and retailers and ranked them according to how much they disclose about their human rights and environmental policies, practices and impacts. Brands owned by this company scored 7%, signifying it has little to no information about their supply chain practices or policies available to the public. The average score was 23% and the highest score was 73%.
Source: Fashion Revolution (2020)
Social No COVID Fashion Commitments
In 2020 Baptist World Aid Australia released The COVID Fashion Report, a special edition of their Ethical Fashion Report. The report is framed around six COVID Fashion Commitments that ask companies to demonstrate the steps and measures they are taking to protect and support the most vulnerable workers in their supply chains. This company showed no evidence of actions that it covered any of the COVID Fashion Commitments.
Source: Baptist World Aid Australia (2020)
Social 0% in Sustainable Cotton Ranking
The 2020 Sustainable Cotton Ranking, published by WWF, Solidaridad and the Pesticide Action Network UK analysed the 77 largest cotton users among international apparel brands and retailers, reviewing their policies, actual uptake of more sustainable cotton and transparency in their supply chains. According to the report, this company is "not yet started" with a score of 0%. The average score was 18.2% and the highest score was 79.2%.
Source: Sustainable Cotton Ranking (2020)
Environment Irresponsible fabric sourcing
In 2015 the Rainforest Action Network (RAN) released a report documenting the results of decades of irresponsible fabric sourcing including land grabbing, forest destruction and human rights abuse to forest-dependent communities caused by deforestation from tree-based fabric production companies. This company was one of the "Fashion Fifteen" implicated in the report for irresponsibly sourcing tree-based fabrics such as rayon and viscose.
Source: RAN (2015)
Social Sweatshops in Indonesia, Sri Lanka and the Philippines
This 2011 report by the International Textile Garment and Leather Workers' Federation (ITGLWF) examined working conditions in 83 factories in Indonesia, Sri Lanka and the Philippines. Investigations found that widespread violations and abuses of workers' rights continue to be the norm, such as underpaying workers, long hours, forced overtime, and repression of the freedom of association. This company's brands were found to be made in one or more of the 83 factories covered in the research. [Listed under Information due to age of report]
Source: ITGLWF (2011)
Business Ethics Transparency Pledge
The Apparel and Footwear Supply Chain Transparency Pledge (Transparency Pledge) helps demonstrate apparel and footwear companies' commitment towards greater transparency in their manufacturing supply chain. Transparency of a company's manufacturing supply chain better enables a company to collaborate with civil society in identifying, assessing, and avoiding actual or potential adverse human rights impacts. This is a critical step that strengthens a company's human rights due diligence. This company is not aligned with the Transparency Pledge and has made no commitment to publish supplier factory information.
Source: Transparency Pledge (2019)
Social Uzbek Cotton Pledge signatory
This company signed the Uzbek Cotton Pledge with the Responsible Sourcing Network, signifying a public commitment to not knowingly source Uzbek cotton for the manufacturing of any of their products until the Government of Uzbekistan ends the practice of forced labor in its cotton sector. However the Pledge was lifted in March 2022 after the Uzbek Forum for Human Rights, who monitored the annual cotton harvest since 2010, found no state-imposed forced labor in the 2021 harvest.
Source: Cotton Campaign (2022)
Animals Fur free
This company has announced that they don't sell animal fur or are phasing in a fur-free policy.
Source: Humane Society (2019)
Animals Angora ban
This company has taken angora items off the shelves and promised not to use angora again, following a PETA campaign launched in Dec 2013 which revealed the cruelty inflicted on angora rabbits in Chinese factory farms, where 90% of the world's angora is produced.
Source: PETA (2018)
Business Ethics I:Collect partner
This company is a partner of I:Collect (aka I:CO), a global collection network to keep discarded clothing and shoes out of landfills. Customers deposit used textiles into recycling dropoff boxes at this company's stores, and I:CO arranges their environmentally-friendly removal, sorting and reuse.
Source: I:Collect (2014)
Social Modern Slavery statement
California, the UK and Australia have all enacted legislation requiring companies operating within their borders to disclose their efforts to eradicate modern slavery from their operations and supply chains. Follow the link to see this company's disclosure statement.
Source: company website (2016)
Social BHRRC company profile
Business & Human Rights Resource Centre digital platform presents news and allegations relating to the human rights impact of over 20,000 companies. Their enhanced Company Dashboards also include financial information, key data points based on corporate policies, and scores from prominent civil society benchmarks. Follow the link and use the search function to view this company's dashboard.
Source: BHRRC (2022)
SPARC Group LLC
Social 100% on Corporate Equality Index
This company is listed as having best practice on a report card on lesbian, gay, bisexual and transgender equality in corporate America.
Source: Human Rights Campaign (2021)
Social Forced labour in China
The Chinese government has facilitated the mass transfer of Uyghur and other ethnic minority citizens from the far west region of Xinjiang to factories across the country. Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of international brands. The 2021 Laundering Cotton report investigates how forced-labour-produced cotton and cotton-based goods from the Uyghur Region wend their way into international supply chains of well-known international clothing brands, including brands owned by this company.
Source: Sheffield Hallam University (2021)
Business Ethics Joint Venture between two companies, both of which have criticisms
SPARC Group is a joint venture between Authentic Brands Group and Simon Property Group, both of which have criticisms in the Shop Ethical database.
Source: Shop Ethical (2020)
Business Ethics Corporate responsibility claims
This company has Corporate Responsibility claims on its website.
Source: company website (2021)
Social BHRRC company profile
Business & Human Rights Resource Centre digital platform presents news and allegations relating to the human rights impact of over 20,000 companies. Their enhanced Company Dashboards also include financial information, key data points based on corporate policies, and scores from prominent civil society benchmarks. Follow the link and use the search function to view this company's dashboard.
Source: BHRRC (2022)
Simon Property Group Inc
Environment CDP Climate Change Score of A-
In 2022, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of A-.
Source: CDP (2022)
Business Ethics 72.3/100 in Newsweek rankings
America's Most Responsible Companies 2022 by Newsweek and Statista recognises the Top 500 most responsible companies in the United States. Companies were evaluated in three areas: environmental (waste, energy use, etc.), social (leadership diversity, employees and philanthropy) and governance (transparency and economic performance). This company received a total score of 72.3/100, ranking 16th in the Real Estate & Housing sector, and 263rd overall.
Source: Newsweek (2021)
Business Ethics 34/100 S&P Global ESG Score
This company received an S&P Global ESG Score of 34/100 in the Real Estate category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 23 Sep 2022). The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices.
Source: S&P Global (2022)
Business Ethics Anticompetitive tactics
In 2017 Simon Property Group agreed to stop anticompetitive tactics that blocked competition from new outlet centers in New York City, and pay US$945,000 to settle a lawsuit with the New York Attorney General. Simon's anticompetitive conduct blocked competition and drove up prices for New York consumers.
Source: New York Attorney General (2017)
Business Ethics 40.3/125 at JUST Capital
JUST Capital polls Americans every year to identify the issues that matter most in defining just business behaviour. For their 2023 rankings JUST Capital asked a representative sample of 3,002 Americans to compare 20 different business Issues on a head-to-head basis, producing a reliable hierarchy of Issues ranked in order of priority. Issues are organised under the headings Workers, Customers, Communities, the Environment, or Shareholders & Governance. JUST Capital then define metrics that map to those issues and track and analyse the largest, publicly traded U.S. companies. This analysis powers their rankings, in which this company ranked 761st of 951 companies, and 31st of 44 Real Estate companies.
Source: JUST Capital (2023)
Social 20% on Corporate Equality Index
This company has the low score of 20% on a report card on lesbian, gay, bisexual and transgender equality in corporate America.
Source: Human Rights Campaign (2021)
Business Ethics CEO Pay Ratio of 166:1
In 2019 the median pay for a worker at this company was US$62,457. The CEO was paid 166 times this amount. Exorbitant CEO pay is a major contributor to rising inequality. CEOs are getting more because of their power to set pay, not because they are increasing productivity or possess specific, high-demand skills. The economy would suffer no harm if CEOs were paid less (or taxed more). In contrast, the CEO-to-typical-worker compensation ratio was 20-to-1 in 1965 and 58-to-1 in 1989.
Source: AFL-CIO (2020)
Environment Climate action commitments
As listed on the We Mean Business website, this company has committed to the following climate action initiatives: adopt a science-based emissions reduction target.
Source: We Mean Business (2021)
Business Ethics Sustainability claims
This company has sustainability claims on its website in the four key areas of Customers, Communities, Environment and Employees.
Source: company website (2021)
Business Ethics OpenSecrets.org profile
OpenSecrets.org tracks the influence of money on U.S. politics, and how that money affects policy and citizens' lives. Follow link to see this company's record of political donations, lobbying, outside spending and more.
Source: Open Secrets (2020)
Authentic Brands Group LLC
Social Forced labour in China
The Chinese government has facilitated the mass transfer of Uyghur and other ethnic minority citizens from the far west region of Xinjiang to factories across the country. Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of international brands, including brands owned by this company.
Source: ITUC (2020)
Business Ethics Part owned by BlackRock, which has criticisms
In 2019 US private equity giant BlackRock bought roughly a 30% stake in this company. BlackRock has several criticisms and an overall Shop Ethical rating of 'F'.
Source: Shop Ethical (2019)

> About the Icons

Company Details

Type Private company
Founded 1984
Revenue 3.4 billion USD (2017)
Employees 32,800 (2018)

Contact Details

Address Panorama City, California, USA
Website www.forever21.com

Products / Brands

Forever 21
Forever 21 Youth Fashion


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