Lucky Brand Dungarees, LLC, retail parent company of Lucky Brand, confirmed it will close the only store it has in Puerto Rico, at The Mall of San Juan, upon filing for voluntary Chapter 11, to pursue a sale of the company.
The Los Angeles based designer and retailer of denim and apparel also announced it has entered into a stalking horse asset purchase agreement with SPARC Group LLC, a global operator of lifestyle brands including Aéropostale and Nautica, for the sale of substantially all of its operating assets.
In connection with the transaction, ABG-Lucky LLC, a newly formed subsidiary of Authentic Brands Group LLC, a brand development, marketing, and entertainment company, which owns a global portfolio of entertainment, media, and lifestyle brands will acquire all the intellectual property assets of Lucky Brand.
“The COVID-19 pandemic has severely impacted sales across all channels. While we are optimistic about the reopening of stores and our customers’ return, the business has yet to recover fully, Executive Chairman of Lucky Brands, Matthew A. Kaness, said.
“We’ve made many difficult decisions to preserve the company’s viability during these unprecedented times. 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,” he said.
“We remain committed to our associates, vendors, and business partners and appreciate the continued support through this process,” Kaness said.
The retailer will close 12 more stores in Arkansas, California, Connecticut, Florida, Illinois, Michigan, and Mississippi.
Lucky Brand was among the first tenants to move into The Mall of San Juan, soon after it opened in March 2015.