(ABC News) — After 30 years, Lucky Brand has filed for bankruptcy amid the coronavirus pandemic.
On Friday, it was announced that the Los Angeles-based company, formally known as Lucky Brand Dungarees, LLC, filed for Chapter 11 bankruptcy due to millions of dollars in outstanding debts owed to lenders.
The denim brand is also looking to sell the business to SPARC Group, which is the operator of Aéropostale and Nautica brands.
With Lucky Brand’s latest news, the label will also be shuttering 13 of its 200+ stores nationwide.
“The COVID-19 pandemic has severely impacted sales across all channels,” interim CEO Matthew A. Kaness said in a statement. “While we are optimistic about the reopening of stores and our customers’ return, the business has yet to recover fully.”
He continued, “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. We remain committed to our Associates, vendors, and business partners and appreciate the continued support through this process.”
Lucky Brand joins Victoria’s Secret, J.C. Penny, The Children’s Place, and several other labels that have announced store closures or bankruptcies this year.