Slinging fashion tidbits to the obsessed trendsetters, the fashionably corrupt and the temperamental divas, The Fashion Slinger, Rhana Kennedy, is here for you with her unwaivering faith in fashion.

Since its start in 1984, Forever 21 has become a retail behemoth. But being the perennial leader in cheap chic fashion has not come easily as the company has faced over 15 lawsuits between 2006 and 2007 alone.

Not only have other retailers and design houses targeted their legal teams against Forever 21, the company has also received harsh criticism for worker conditions in their factories in Los Angeles which ultimately turned into a lawsuit.

Founded by Do Won (Don) and Jin Sook Chang in 1984, Forever 21 started humbly on the bustling street of Figueroa in Los Angeles as Fashion 21. Having immigrated to the United States just three years before hand from South Korea, the Changs quickly realized a need for affordable clothing that was fresh, modern and trendy.

The first store was only 900 square feet. 20 years later, Forever 21 stores have grown to just under 400 stores (some of which now boast an impressive 24,000 square feet), mostly within malls in the United States, Canada, Dubai and Singapore. Revenue for 2006 was a whopping $1.05 billion and with more than 12,000 employees, Forever 21 continues to grow at a rate of 30 new stores every year.

Forever 21 has prospered because of the company’s ability to spot hot trends and to reproduce catwalk fashions, bringing them to market in six weeks or less. Their prices are crazy affordable - $24.80 for a woven wrap dress and $26.80 for a pair of pumps (see below).  

Turnover rate for their clothing is high – almost every few weeks, the inventory changes to reflect the ever-evolving fashion world. The Changs have surpassed once-competitors Charlotte Russe and Wet Seal. They now rival H&M in terms of pricing and fashion power.

Despite remarkable earnings and rapid growth, Forever 21 cannot escape the legal woes that follow the company every time a new trend or garment has been reproduced.

In April of 2007, iconic designer Anna Sui sued Forever 21 for copyright infringement. According to the complaint filed in U.S. District Court in Southern New York:

“it was brought to the attention of Sui that Defendants [Forever 21] were selling and offering for sale in their stores numerous women’s clothing items bearing a striking similarity to the Sui Products features at the most recent New York Fashion Week shows. Indeed, much of the collection displayed by Sui at the shows had itself not yet been  finally manufactured and Sui’s own distribution of some of its newest Sui products not yet released. Upon investigation, sui determined that Defendants had copied numerous of Sui’s most recent Sui Designs and that Defendants had made an ongoing practice of such copying from a number of recent collections, since at least late 2005. Such copying was clearly blatant and intentional. A detailing of the Sui Designs copied, particularly when viewed in the context of the similarity of the overall garment designs in hich the infringing designs are incorporated, makes evident that Defendants copying was willful as a matter of law.”

Sui’s garment is on the right, while Forever 21’s version is on the left – pretty similar to me.

Showcasing her distaste for the Changs, Sui designed a shirt depicting the Changs as wanted bandits with a quote from Exodus, referencing Forever 21’s usage of “John 3:16″ on every one of their yellow shopping bags. See the shirt below.

In June of 2007, Gwen Stefani’s Harajuku Lovers sued Forever 21 for trademark infringement. Apparently, Forever 21 took the liberty of taking the Harajuku Lovers logo of black hearts with Japanese characters and replaced “Harajuku Lovers” with “Forever Love”.  Take a look at the obvious knockoffs below. 

Diane Von Furstenburg, Bebe, Anthropoligie are among a long list of companies that have sued Forever 21 for copyright and trademark infringement.  To view an article by Fashion lawyer explaining the difference between copyright and trademark, click here. 

Not only are other companies suing Forever 21, workers in the factories that design and sew the retail giant’s clothes have also filed suit.  In 2001, factory workers tried to work directly with Forever 21 management alert them of the terrible conditions in which they worked.  Workers were owed thousands of dollars in back wages and overtime and were forced to work in unsafe and unsanitary working conditions.

Unfortunately, Forever 21 refused to negotiate with the workers. So, in November 0f 2001, with representation from the Asian Pacific American Legal Center, workers filed a lawsuit against the retailer seeking unpaid wages, damages and penalties. Forever 21 finally acquiesced and agreed to pay the workers what was due to them and with  Sweatshop Watch scrutinizing their every move, the company finally promised workers better working conditions.

In 2004 animal rights group PETA waged war against Forever 21 asking them to stop selling clothing with real fur. PETA organized heavy campaigns against the company.  In the end, PETA received an olive branch from Forever 21 Senior Vice President Lawrence H. Meyer that the retailer would stop selling clothing with real fur immediately and not sell fur ever again.

Although they have been able to settle out of court on some of these lawsuits and continue to create a history in manipulating the legal system, can Forever 21 survive these massive legal hits?

The answer is yes.

Forever 21 will continue its meteoric rise and investors will persist and ask the Changs to take their multi-billion dollar company public. Why? Just ask any teenager, 20 or 30-something who flips through the pages of InStyle or Vogue yearning to be dressed in head to toe in the latest fashions for under $100.

What do you think? Is Forever 21 justified in providing what consumers want? Or does the company go too far in breaking the rules? As always, comments are welcome and appreciated!