Apparel company Lucky Brand name Dungarees is filing intended for Chapter 11 bankruptcy , this said on July a few, becoming the latest retailer in order to fall victim to the coronavirus pandemic.
The particular firm said it acquired entered into a “ harassment horse asset purchase agreement” with SPARC Group LLC, which owns brands for example Aeropostale and Nautica, for that sale of “ substantially all” its operating assets.
Such a pact pieces a starting bid or even minimally accepted offer as being a threshold for other would-be if they want to bid.
Lucky Brand approximated both assets and debts in the range of $100 mil to $500 million, the filing in the U. S i9000. Bankruptcy Court of Delaware showed.
The Neiman Marcus store is seen throughout the outbreak of the coronavirus within New York City, on April nineteen, 2020. (Jeenah Moon/Reuters)
“ The COVID-19 pandemic has severely affected sales across all stations, ” the firm’ ersus interim chief executive, Matthew Kaness, said in the statement.
“ While we have been optimistic about the reopening associated with stores and our customers’ return, the business has however to recover fully. ”
ABG-Lucky, a newly-formed unit of Authentic Manufacturers Group, the brand supervisor which bought Barneys Nyc out of bankruptcy, will purchase the intellectual property of Fortunate Brand, the statement additional.
The company stated it had received brand new financing commitments from a few existing lenders to ensure sufficient liquidity to fund the business with the closing of the sale.
The statement failed to specify the amount of the obligations received, adding that the business would operate its company during the Chapter 11 procedure.
Lucky Brand name, founded in Los Angeles within 1990, joins a growing roster of apparel retailers forced towards bankruptcy by the malware. J Crew Group, JC Penney, and Neiman Marcus each filed for personal bankruptcy in May.
By Kanishka Singh