Denim retailer Lucky Brand Dungarees has filed for bankruptcy protection, blaming its troubles in part on the coronavirus pandemic, and said it has a deal lined up to sell the company
LOS ANGELES — .Los Angeles-based Lucky filed for Chapter 11 protection on Friday in federal bankruptcy court in Delaware.
SPARC operates under the Aeropostale and Nautica brands that that are owned by Authentic Brands Group and mall operator Simon Property Group, one of Lucky’s key landlords, according to the filing. Lucky Brand operates more than 200 U.S. stores, mostly in shopping malls, and sells items at other chains including Macy’s, Nordstrom and Costco.
The chain was also hurt by limited liquidity, which made it harder to get new inventory from vendors. Renzi said some key venders began requiring payment on delivery or other new terms, adding to financial pressure on the company.
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Lucky Brand files for bankruptcy citing COVID-19, looks to sell company to Aéropostale owner. Is your store closing?Lucky Brand Dungarees LLC, which has about 200 Lucky Brand stores in North America and sells its products in department stores, plans to sell the equity-backed business to the SPARC Group, operator of Aéropostale and Nautica.
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