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May, 27 2016

Aditya Birla Fashion to acquire Forever 21 India

Aditya Birla Fashion and Retail Ltd (ABFRL), the retail arm of Aditya Birla Group, has entered into a binding Memorandum of Understanding (MoU) with California-based fashion retailer Forever 21 to acquire its India business from its current franchisee.

Aditya Birla Fashion and Retail Ltd (ABFRL), the retail arm of Aditya Birla Group, has entered into a binding Memorandum of Understanding (MoU) with California-based fashion retailer Forever 21 to acquire its India business from its current franchisee, Diana Retail Private Ltd, for an unspecified amount.

The deal includes both online and offline rights of Forever 21 for the Indian market and its existing store network in the country.

The deal includes transfer of online rights as well as existing store network of the fast fashion brand in the country.

Fashion retailer Forever 21 has a network of more than 700 stores across the world. With the acquisition of Forever 21 India business, they aim to create a strong foothold in women’s wear in the western wear segment. Currently, the western women’s wear segment is growing at more than 20 per cent.

.The board of directors of ABFRL has approved the proposed acquisition, which is subject to the necessary statutory approvals and signing of a definitive agreement. Speaking on the development Pranab Barua, Managing Director, ABFRL said that the proposed acquisition is in line with strategic intent to create the largest integrated branded fashion player in the country.

With the acquisition of Forever 21 India business, they aim to create a strong foothold in women’s wear in the western wear segment. At present, the western women’s wear segment is growing at more than 20 per cent. He further said the proposed acquisition will further strengthen the leadership position of ABFRL in the branded fashion space. 

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