Denim Retailer Lucky Brand Dungarees Files for Bankruptcy!
The coronavirus has claimed yet another victim in the retail world. Denim retailer Lucky Brand Dungarees has filed for bankruptcy. Lucky has filed for Chapter 11 protection last week in federal bankruptcy court in Delaware. As part of their bankruptcy, Luck Brand Dungarees plans to close 13 stores with more on the horizon.
However, it’s not all bad news for this major denim retailer. Lucky claims to already have a buyer in place. Retail operator SPARC Group has put an offer on the table for $140.1 million in cash and $51.5 million in credit. The deal would save Lucky from shuttering completely and keep its remaining chain of stores intact.
Several major retailers already operate under the SPARC Group umbrella including Aeropostale and Nautica. Lucky anticipates the deal to be wrapped up by mid-August.
Prior to the pandemic Lucky Brand Dungarees employed 3,000 workers with a majority of them being part-time. However, due to the pandemic, Lucky furloughed close to 2,700 employees. Of the 2,700 only 900 were brought back.