Forever 21 Inc

After snapping up 14 former Mervyns leases last year, Forever 21 Inc. is at it again. The Los Angeles retailer, known for its hip, affordable clothing, has agreed to buy three former Gottschalks stores and to take over as many as 14 of the bankrupt department store chain's leases, Forever 21 Executive Vice President Larry Meyer said Thursday. "We're pleased with the opportunity to provide our fashion merchandise to a wider array of customers and to provide jobs at this difficult time," he said.

Most retailers are tapping the brakes as they navigate a rocky economy. Forever 21 Inc. has its pedal to the metal. The fast-fashion retailer is expanding around the globe, increasing product lines and opening showy new stores. The largest yet, which at 90,000 square feet on three levels will be bigger than the size of the Rose Bowl playing field, is scheduled to open in Times Square next year.

Shares of Charlotte Russe Holding Inc. tapped a 52-week high Friday, a day after the women's apparel retailer announced that it was selling most of the assets of its struggling Rampage chain to competitor Forever 21 Inc. for $14 million. The move allows the San Diego-based retailer, which operates 360 Charlotte Russe stores and 64 Rampage sites, to focus on its namesake chain. The company plans to open an additional 90 Charlotte Russe stores by the end of fiscal 2007.

Forever 21 Inc., a fast-expanding Los Angeles apparel retailer that targets teen girls and young women, is planning to buy competitor Gadzooks Inc. out of bankruptcy for about $33 million. That would dramatically increase the size of Forever 21, a 200-store chain. Executives said Thursday that the retailer had agreed to assume the leases of at least 150 Gadzooks stores.

Garment workers who claimed they labored in sweatshops making clothes for Forever 21 Inc. have settled with the retailer, both sides said Tuesday. The settlement, which involved 33 workers, marks the end of a nationwide boycott against Los Angeles-based Forever 21, according to the Garment Worker Center and the Asian Pacific American Legal Center of Southern California, which represented the workers. Terms of the agreement weren't disclosed.

Nine upscale Los Angeles hotels, in difficult negotiations with unionized workers since last spring, said Tuesday that they had agreed to most union demands except the length of a new contract. Contract length has been the main point of contention from the beginning of negotiations, however, so it was unclear whether the new offer would break the stalemate. The union is seeking a two-year pact so that it can line up contract expirations with locals in other cities.

Forever 21 Inc., a fast-growing chain of low-cost apparel stores for young women, said Monday that it acquired nearly all the assets of rival Reference Co. out of Bankruptcy Court. Los Angeles-based Forever 21 paid $3.5 million to acquire 14 of Reference's 16 stores, as well as its remaining inventory, said Larry Meyer, Forever 21's chief financial officer. He said the purchase would allow Forever 21 to grow more quickly, especially in California, where 11 of the 14 Reference stores are located.

Hip clothing retailer Forever 21 filed a defamation lawsuit against several anti-sweatshop groups Wednesday, claiming they unfairly targeted the label in a "vicious" public campaign. The suit came two days after U.S. District Court Judge Manuel Real dismissed a claim for back pay and damages filed on behalf of 19 workers, who said they sewed Forever 21 clothing at various Los Angeles factories.

A workers' advocacy group filed suit in Los Angeles Superior Court Thursday against the popular teen clothing retailer Forever 21 Inc., alleging it engaged in unfair labor practices by systematically contracting work out to sweatshops. The lawsuit by the Asian Pacific American Legal Center named 19 workers who allegedly sewed, ironed or packed Forever 21 clothing six days a week, sometimes 12 hours a day, for far less than the minimum wage.