The company joins several other retailers that recently filed for bankruptcy.
After 30 years, Lucky Brand filed for bankruptcy amid the coronavirus pandemic.
On Friday, it was announced that the Los Angeles-based company, formally known as Lucky Brand Dungarees, LLC, filed for Chapter 11 bankruptcy due to millions of dollars in outstanding debt with lenders.
The denim brand is also looking to sell the business to the SPARC Group, which is the operator of the Aéropostale and Nautica brands.
With the latest Lucky Brand news, the label will also close 13 of its more than 200 stores across the country.
“The COVID-19 pandemic has severely affected sales across all channels,” interim CEO Matthew A. Kaness said in a statement. “While we are optimistic about the reopening of the stores and the return of our customers, the business has not yet fully recovered.”
He continued: “After considering all options, the Board determined that the Chapter 11 filing is the best course of action to streamline operations and ensure the long-term success of the brand. We remain committed to our Associates, suppliers, and business partners. and I appreciate the continued support through this process. “
Lucky Brand joins Victoria’s Secret, JC Penny, The Children’s Place, and several other labels that have announced store closings or bankruptcies this year.
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