Mall owners with group bidding for Forever 21

A consortium of buyers, including mall owners Simon Property Group and Brookfield Property Partners, is bidding $81 million for Forever 21, the ubiquitous mall staple that filed for bankruptcy protection in September.

Simon and Brookfield are Forever 21’s biggest landlords. The other bidder is Authentic Brands Group, which has acquired the licensing rights to other troubled retailers like Barneys New York.

In 2016, Simon and mall owner General Growth Properties, which is now owned by Brookfield Property

Partners, teamed up to save struggling teen apparel retailer Aeropostale, which was in bankruptcy. Simon’s Chairman and CEO David Simon told investors during an earnings call last year that Simon was looking at other potential bankrupt retailers.

Mark Hunter, managing director leading CBRE’s mall management and leasing business in the Americas, said Simon and others are trying to keep occupancy high at their malls. They don’t want to trigger a clause that lets other retailers at the shopping center ask for a lower rent or eventually get out of a lease.

Still, Simon and others remain “strategic” regarding which retailer to buy.

Forever 21, based in Los Angeles, is a privately held company founded by the Chang family.

It joined a growing list of retailers that have fallen victim to changing shopping behaviors and preferences among teens who have increasingly turned away from malls in favor of online brands, or thrift stores.

Forever 21’s bankruptcy marked a dramatic fall for the retailer.

Other interested parties have until Friday to provide a higher offer. If a higher bid is accepted, there’s a breakup fee of $4.6 million.

The approval for the sale will face a judge on Feb. 11.