Lucky Brand became the latest retailer to seek bankruptcy protection when it filed for chapter 11 protection in the United States Bankruptcy Court for the District of Delaware on Friday, July 3rd. Lucky Brand joins J.Crew, Neiman Marcus and J.C. Penney, all of which filed for bankruptcy during the pandemic.
Matthew A. Kaness, Lucky Brand interim CEO and executive chairman of the company, said in a press statement:
The COVID-19 pandemic has severely impacted sales across all channels,” Kaness said. “While we are optimistic about the reopening of stores and our customers’ return, the business has yet to recover fully. We have made many difficult decisions to preserve the company’s viability during these unprecedented times.
The first of the Lucky Brand locations to be closed are located in the following states: Arkansas, California, Connecticut, Florida, Illinois, Michigan, Mississippi, Nevada, and the commonwealth of Puerto Rico.
Through the bankruptcy, the company will seek to sell its assets to SPARC Group, operator of Aéropostale and Nautica. The debtors’ chapter 11 cases are jointly administered under lead debtor Lucky Brand Dungarees, LLC, case number 20-11768, before the Honorable Christopher S. Sontchi. The law firms of Latham & Watkins LLP and Young Conaway Stargatt & Taylor, LLP represent the Lucky Brand debtors.