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MIRA INFORM REPORT
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Report No. : |
502507 |
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Report Date : |
06.04.2018 |
IDENTIFICATION DETAILS
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Name : |
FOREVER 21, INC. |
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Registered Office : |
Corporation Trust Center 1209 Orange St, Wilmington, New Castle, DE,
19801 |
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Country : |
United States |
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Year of Establishment : |
1984 |
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Legal Form : |
Corporation |
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Line of Business : |
· Subject operates as a fashion retailer of women’s, men’s, and kids clothing and accessories internationally. ·
Subject offers clothing products in the areas of
dresses, tops, jackets, bottoms, intimates, sleepwear, and active wear. The company
also provides accessories, such as bags, belts, sunglasses, readers, hair
accessories, socks, tights, beauty products, hats, scarves, gloves, and home
and tech products; and jewelry products, including necklaces, earrings, body
jewelry, rings, bracelets, pins, patches, and watches. In addition, it offers
shoes, including sandals, heels, wedges, espadrilles, sneakers, boots,
booties, oxfords, loafers, wide fit products, and flats; and swimwear, such
as bikini tops, bikini bottoms, one pieces, cover ups, and surf products. |
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No. of Employees : |
30.000 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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United States |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
UNITED STATES - ECONOMIC OVERVIEW
The US has the most technologically powerful economy in the world, with
a per capita GDP of $57,300. US firms are at or near the forefront in
technological advances, especially in computers, pharmaceuticals, and medical,
aerospace, and military equipment; however, their advantage has narrowed since
the end of World War II. Based on a comparison of GDP measured at purchasing
power parity conversion rates, the US economy in 2014, having stood as the
largest in the world for more than a century, slipped into second place behind
China, which has more than tripled the US growth rate for each year of the past
four decades.
In the US, private individuals and business firms make most of the
decisions, and the federal and state governments buy needed goods and services
predominantly in the private marketplace. US business firms enjoy greater
flexibility than their counterparts in Western Europe and Japan in decisions to
expand capital plant, to lay off surplus workers, and to develop new products.
At the same time, businesses face higher barriers to enter their rivals' home
markets than foreign firms face entering US markets.
Long-term problems for the US include stagnation of wages for
lower-income families, inadequate investment in deteriorating infrastructure,
rapidly rising medical and pension costs of an aging population, energy
shortages, and sizable current account and budget deficits.
The onrush of technology has been a driving factor in the gradual
development of a "two-tier" labor market in which those at the bottom
lack the education and the professional/technical skills of those at the top
and, more and more, fail to get comparable pay raises, health insurance
coverage, and other benefits. But the globalization of trade, and especially
the rise of low-wage producers such as China, has put additional downward
pressure on wages and upward pressure on the return to capital. Since 1975,
practically all the gains in household income have gone to the top 20% of
households. Since 1996, dividends and capital gains have grown faster than
wages or any other category of after-tax income.
Imported oil accounts for nearly 55% of US consumption and oil has a
major impact on the overall health of the economy. Crude oil prices doubled
between 2001 and 2006, the year home prices peaked; higher gasoline prices ate
into consumers' budgets and many individuals fell behind in their mortgage
payments. Oil prices climbed another 50% between 2006 and 2008, and bank
foreclosures more than doubled in the same period. Besides dampening the
housing market, soaring oil prices caused a drop in the value of the dollar and
a deterioration in the US merchandise trade deficit, which peaked at $840
billion in 2008. Because the US economy is energy-intensive, falling oil prices
since 2013 have alleviated many of the problems the earlier increases had
created.
The sub-prime mortgage crisis, falling home prices, investment bank
failures, tight credit, and the global economic downturn pushed the US into a
recession by mid-2008. GDP contracted until the third quarter of 2009, making
this the deepest and longest downturn since the Great Depression. To help
stabilize financial markets, the US Congress established a $700 billion
Troubled Asset Relief Program (TARP) in October 2008. The government used some of
these funds to purchase equity in US banks and industrial corporations, much of
which had been returned to the government by early 2011. In January 2009,
Congress passed and President Barack OBAMA signed a bill providing an
additional $787 billion fiscal stimulus to be used over 10 years - two-thirds
on additional spending and one-third on tax cuts - to create jobs and to help
the economy recover. In 2010 and 2011, the federal budget deficit reached
nearly 9% of GDP. In 2012, the Federal Government reduced the growth of
spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and
other sources are lower, as a percentage of GDP, than those of most other
countries.
Wars in Iraq and Afghanistan required major shifts in national resources
from civilian to military purposes and contributed to the growth of the budget
deficit and public debt. Through 2014, the direct costs of the wars totaled
more than $1.5 trillion, according to US Government figures.
In March 2010, President OBAMA signed into law the Patient Protection
and Affordable Care Act, a health insurance reform that was designed to extend
coverage to an additional 32 million Americans by 2016, through private health
insurance for the general population and Medicaid for the impoverished. Total
spending on healthcare - public plus private - rose from 9.0% of GDP in 1980 to
17.9% in 2010.
In July 2010, the president signed the DODD-FRANK Wall Street Reform and
Consumer Protection Act, a law designed to promote financial stability by
protecting consumers from financial abuses, ending taxpayer bailouts of
financial firms, dealing with troubled banks that are "too big to
fail," and improving accountability and transparency in the financial
system - in particular, by requiring certain financial derivatives to be traded
in markets that are subject to government regulation and oversight.
In December 2012, the Federal Reserve Board (Fed) announced plans to
purchase $85 billion per month of mortgage-backed and Treasury securities in an
effort to hold down long-term interest rates, and to keep short-term rates near
zero until unemployment dropped below 6.5% or inflation rose above 2.5%. In
late 2013, the Fed announced that it would begin scaling back long-term bond
purchases to $75 billion per month in January 2014 and further reduce them as
conditions warranted; the Fed ended the purchases during the summer of 2014. In
2014, the unemployment rate dropped to 6.2%, and continued to fall to 5.5% by
mid-2015, the lowest rate of joblessness since before the global recession
began; inflation stood at 1.7%, and public debt as a share of GDP continued to
decline, following several years of increases. In December 2015, the Fed raised
its target for the benchmark federal funds rate by 0.25%, the first increase
since the recession began. With US GDP growth below 2%, the Fed has opted to
raise rates three times since then, and in mid-June 2017, the range for the
target rate stood at 1% to 1.25%.
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Source
: CIA |
STATUTORY
INFORMATION
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Legal Name: |
FOREVER 21, INC. |
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Trade Names: |
FOREVER 21, INC. |
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ID: |
3494445 |
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Date Created: |
1984 |
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Date Incorporated: |
2/21/2002 |
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Legal Address: |
Corporation Trust Center 1209 Orange St, Wilmington, New Castle, DE,
19801, USA |
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Operative Address: |
3880 North Mission Road Los Angeles, CA 90031 United States |
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Telephone: |
213-741-8257 |
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Fax: |
213-741-8995 |
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Legal Form: |
Corporation |
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Email: |
- |
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Registered in: |
DELAWARE |
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Website: |
www.forever21.com |
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Contact: |
Mr. Do Won Chang - Co-Founder and Chief Executive Officer |
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Staff: |
30.000 |
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Activity: |
Retail Sector Industry Internet & Mail-Order Retail Industry Clothing Stores Industry Nonstore Retail Industry |
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Banks: |
BANK OF AMERICA |
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History: |
The company was founded in 1984 and is based in Los Angeles,
California. Forever 21, Inc. was formerly known as Fashion 21, Inc. |
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Key Developments: |
Forever 21, Inc. to Launch New Stores May 19 17 Forever 21, Inc. to expand into new concepts, and has partnered with
GGP to open stores in 13 of their top tier locations. These new, experiential
spaces will be focused on accessories, cosmetics and home goods for the
millennial consumer. The company will open 10 stores in 2017, and follow up
with three more in 2018. GGP Inc. and Forever 21, Inc. Announces the Partnership to Introduce
an Innovative Brick-And-Mortar Experience May 19 17 GGP Inc. and Forever 21 Inc. announced their partnership to introduce
an innovative brick-and-mortar experience. The fast-fashion giant will debut
Riley Rose, its highly anticipated beauty boutique at 13 GGP regional
shopping centers. GGP constantly evolves its properties to curate an
environment of retailers that have an emotional connection to the customer.
With a focus on creating an optimal customer experience, GGP curates each of
its properties with a fusion of traditional retailers, e-commerce tenants
expanding into brick and mortar, dining and entertainment. Forever 21 to Open over Forty New Retail Locations Across the U.S. in
2017 Apr 5 17 Forever 21 continues its expansion of F21 RED and announced plans to
open over forty new retail locations across the U.S. in 2017. The first three
F21 RED stores will open in April in key retail markets across the U.S.
including San Antonio, Texas, Bronx, New York and Chicago, Illinois. New
locations will continue to open throughout the year in key cities and will
bring F21 RED total store count to more than seventy locations by year-end. |
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PRINCIPAL
ACTIVITY
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Forever 21, Inc. operates as a fashion retailer of women’s, men’s, and
kids clothing and accessories internationally. |
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Products/Services description: |
It offers clothing products in the areas of dresses, tops, jackets,
bottoms, intimates, sleepwear, and active wear. The company also provides
accessories, such as bags, belts, sunglasses, readers, hair accessories,
socks, tights, beauty products, hats, scarves, gloves, and home and tech
products; and jewelry products, including necklaces, earrings, body jewelry,
rings, bracelets, pins, patches, and watches. In addition, it offers shoes,
including sandals, heels, wedges, espadrilles, sneakers, boots, booties,
oxfords, loafers, wide fit products, and flats; and swimwear, such as bikini
tops, bikini bottoms, one pieces, cover ups, and surf products. |
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Brands: |
FOREVER 21 |
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Sales are: |
Retail and Wholesale |
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Clients: |
Iman Sa Forever 21 Mexico S De Rl De Cv Alameda Colombia S A S. Sisal Peru Sac |
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Suppliers: |
P.C.Global Merchandising Pvt.Ltd. Aditya Birla Fashion And Retail Limited. |
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Operations area: |
National and International |
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The company imports from |
INDIA |
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The company exports to |
PARAGUAY MEXICO COLOMBIA PERU |
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The subject employs |
30.000 employees |
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Payments: |
Regular |
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LOCATION
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Headquarters : |
3880 North Mission Road Los Angeles, CA 90031 United States |
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Comments on Address: |
This business is located at 3880 N Mission Rd, a commercial address in
Los Angeles, CA. The warehouse was last sold on June 16, 2010 for $38 million
USD. The warehouse has an estimated value of $33.4 million USD, which
places it among the most valuable 10% of warehouses in the area. When the
building was last assessed in 2012, the assessment value was $33 million USD. With 585,842 square feet of space, this building is one of the largest
warehouses in the 90031 zip code. The average warehouse in the area has
around 2,956 square feet. |
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Branches: |
Fast-fashion retailer Forever 21 operates over 600 stores under the
Forever 21, XXI Forever, For Love 21, Heritage 1981, and Reference banners.
Some of them are: Forever 21, Inc. (Branch Location) 50 Holyoke St Unit 10215 Holyoke, Massachusetts 01040-2866 United States Forever 21, Inc. (Branch Location) 1140 Annapolis Mall # 164 Annapolis, Maryland 21401-3063 United States Forever 21, Inc. (Branch Location) 3000 184th St Sw Lynnwood, Washington 98037-4718 United States Forever 21, Inc. (Branch Location) 7650 W Arrowhead Towne Glendale, Arizona 85308-8610 United States |
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Related Companies: |
Stores can be found throughout the U.S. and in Canada, Europe, Japan,
Korea, South America and the Philippines. Some of them are: Avenue Presidente Masarik 29 - 6th floor, Polanco
Reforma, Mexico City 11550, Mexico Forever 21 Montevideo Shopping Montevideo Shopping, Av. Dr. Luis Alberto de
Herrera 1290, 11300 Montevideo, Uruguay Forever 21 Costanera Center Avenue Andres Bello 2425 Providencia Santiago, Chile |
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GROUP STRUCTURE AND SUBSIDIARY COMPANIES
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Listed at the stock exchange: |
NO |
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Capital: |
NA |
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Shareholders: |
This is a private company. The major holders are: Do Won Chang Jin Sook Chang |
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Management: |
Mr. Do Won Chang - Co-Founder and Chief Executive Officer Won Chang - President Mr. Jin Sook Chang - Co-Founder Ms. C. Elizabeth Jain CPA - Chief Financial Officer Mr. Chris Lee - Senior Vice President |
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FINANCIAL
INFORMATION
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The company does not make its financial
statements public. The following information has been provided by private
sources: |
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USD 2016 |
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Revenue |
4,000.000.000 |
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Cash flow |
Normal |
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LEGAL
FILINGS
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PATENTS |
Display rack Patent number: D785381 Type: Grant Filed: March 25, 2016 Date of Patent: May 2, 2017 Assignee: Forever 21, Inc. Inventor: Bradley Packer Johnson Display rack Patent number: D785383 Type: Grant Filed: March 25, 2016 Date of Patent: May 2, 2017 Assignee: Forever 21, Inc. Inventor: Bradley Packer Johnson Display rack Patent number: D801730 Type: Grant Filed: March 25, 2016 Date of Patent: November 7, 2017 Assignee: Forever 21, Inc. Inventor: Bradley Packer Johnson |
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GOVERNMENT CONTRACTS |
No found. |
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CASES |
Bragel International, Inc. v. Forever 21, Inc. et al Plaintiff: Bragel International, Inc. Defendant: Does and Forever 21, Inc. Case Number: 2:2017cv05980 Filed: August 11, 2017 Court: California Central District Court Referring Judge: Steve Kim Presiding Judge: S. James Otero Nature of Suit: Other Tianhai Lace USA Inc v. Forever 21, Inc. et al Plaintiff: Tianhai Lace USA Inc Defendant: DOES and Forever 21 Inc Case Number: 2:2017cv07512 Filed: October 13, 2017 Court: California Central District Court Presiding Judge: Andre Birotte Referring Judge: Patrick J. Walsh Nature of Suit: Other Color Image Apparel, Inc., a California corporation v. Forever 21,
Inc. et al Plaintiff: Color Image Apparel, Inc Defendant: Does, Forever 21 Retail, Inc. and Forever 21, Inc. Case Number: 2:2017cv07537 Filed: October 13, 2017 Court: California Central District Court Referring Judge: Jacqueline Chooljian Presiding Judge: George H. Wu Nature of Suit: Other |
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TRADEMARKS |
21 MEN Bracelets; Necklaces Owned by: Forever 21, Inc. Serial Number: 85399730 F21 Boots; Footwear; Heels; Sandals; Shoes; Slippers Owned by: Forever 21, Inc. Serial Number: 85052199 XXI Jewelry Owned by: FOREVER 21, INC. Serial Number: 76975955 FOREVER XXI Retail store services featuring clothing and accessories, jewelry, handbags,
wallets and shoes Owned by: FOREVER 21, INC Serial Number: 76196458 FOREVER XXI Men's, women's and children's clothing, namely, t-shirts, shirts,
blouses, pants, shorts, skirts, dresses, vests, sweaters… Owned by: FOREVER 21, INC Serial Number: 76196459 F21 FAST FIX Retail store services featuring cosmetics, eyewear, namely,
sunglasses, jewelry, namely, bracelets, earrings, necklaces,… Owned by: Forever 21, Inc. Serial Number: 86155433 |
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RENEWAL HISTORY |
No records found. |
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UCC |
No records found. |
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OFAC Sanctions List Search |
The company is not listed in the OFAC list. |
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SUMMARY
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Founded in 1984, Forever 21, Inc. is a large-sized organization in the
shoe stores industry located in Los Angeles, CA. It has 30,000 full time employees and generates an estimated $4
billion in annual revenue. The company mainly imports from India. It operates nationally and
internationally. It is ACTIVE in business with no negative records. |
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RISK
INFORMATION
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DEBTS |
Controlled |
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PAYMENTS |
Regular |
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CASH FLOW |
Normal |
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STATUS |
Active |
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INTERVIEW
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NAME |
Fiona |
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POSITION |
Operator |
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COMMENTS |
She confirmed the name of the company, the address of the headquarters
and location, the date of creation of the company, the number of employees
and the name of the Chief Executive Officer. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.06 |
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1 |
INR 91.50 |
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Euro |
1 |
INR 79.78 |
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USD |
1 |
INR 65.00 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.