Forever 21 Founders Borrowed $10 Million From Their Daughters
- Their adult offspring are in key posts at bankrupt retailer
- Ambitious expansion strained the retailer’s resources
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As Forever 21’s botched international expansion morphed into a money-loser, its owners turned to a funding source less likely to say no: their own children.
Founders Jin Sook and Do Won Chang borrowed $5 million in 2015 from the trusts for each of their adult daughters, Linda and Esther Chang, paying them 2% interest. Now the offspring are named as unsecured creditors of their parents’ company in filings Monday with Forever 21’s bankruptcy.