A pedestrian walks through a Lucky Brand retail store on July 6, 2020 in Corte Madera, California. Lucky Brand Dungarees based in Los Angeles announced that it has filed for Chapter 11 bankruptcy because the company has millions of dollars in debt. The retailer will close 13 of its 200 retail stores.
Justin Sullivan | Getty Images
A team-up of the largest U.S. mall owner, Simon Property Group, and apartment licensing firm Authentic Brands Group has been filed by a bankruptcy court as the winning bidder to get denim maker Lucky Brand for $ 140.1 million.
The two – in a company known as Sparc – announced Thursday night that they will commit to the role of core licensee and operating partner for Lucky, overseeing all sourcing, product design and development, running all retail stores in North America, and their e-commerce business.
Lucky has more than 175 stores in North America, and its brand is also frequently found in department stores such as Macy’s. The clothing brand filed for bankruptcy protection under Chapter 11 in early July, and fell victim to the pain attributed to retail under the coronavirus pandemic.
ABG, which has acquired a number of retailers over the years, including Barneys New York and Nine West, will own Lucky’s intellectual property and oversee all licensing partnerships, new business operations and market development, a press release said.
“This acquisition will boost the value of our portfolio more annually to $ 13 billion in global retail sales,” ABG founder and CEO Jamie Salter said in a statement. “Lucky Brand’s DNA resonates strongly with today’s youth and we see enormous opportunity to unlock its value in key areas around the world.”
It was not immediately clear how many Lucky stores Sparc ultimately intends to keep open for business.
It said it will negotiate with landlords to keep “important stores” open in North America.
Sparc was named earlier this week as the successful bidder for bankrupt men’s apparel retailer Brooks Brothers, in a $ 325 million deal to keep at least 125 Brooks Brothers stores open.
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