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 the online and offline rights of Forever 21 for the Indian market and its existing store network in the country.
The board of directors of ABFRL on Wednesday approved the proposed acquisition, which is subject to the necessary statutory approvals and signing of a definitive agreement. Fashion retailer Forever 21 has a network of more than 700 stores across the world. Pranab Barua, Managing Director, ABFRL said, “The proposed acquisition is in line with our strategic intent to create the largest integrated branded fashion player in the country. With the acquisition of Forever 21 India business, we aim to create a strong foothold in women’s wear in the western wear segment.”