Lucky Brand has over 200 stores in North America, but will be closing 13 of those locations after filing for bankruptcy. Lucky Brand apparel is only sold at a few select retailers including Lucky Brand stores and Macy’s, to name a few.
According to a Lucky Brand spokesperson, the bankruptcy will “reduce its debt burden caused by recent challenges.”
Lucky Brand is positioning itself for an upcoming sell to the SPARC Group – which also operates Aeropostale and Nautica. The Lucky Brand spokesperson noted that the bankruptcy filing is to “facilitate the sale.”
Lucky Brand has been in business for 30 years, but currently has millions of dollars in outstanding debts owed to lenders. Interim CEO Matthew A. Kaness said in a statement,
“The COVID-19 pandemic has severely impacted sales across all channels,” going on to add, “While we are optimistic about the reopening of stores and our customers’ return, the business has yet to recover fully.”
Like many retailers during the pandemic, filing for bankruptcy is a way to ensure future business operations and reduce debt. Kaness backed the businesses’ decision, stating,
“After considering all options, the Board has determined that a Chapter 11 filing is the best course of action to optimize the operations and secure the brand’s long-term success.”
The initial list of closures includes 13 Lucky Brand retail locations in North America, including one in Puerto Rico. The bankruptcy filing indicates these 13 stores will close pending the bankruptcy proceedings:
Lucky Brand joins a growing list of retailers who have filed for Chapter 11 bankruptcy and closed multiple locations. The Children’s Place, J.C. Penney, Victoria’s Secret, Signet Jewelers and more have filed for Chapter 11 since the coronavirus outbreak mandated closures.