Categories
brand Lucky

Lucky Brand files for bankruptcy citing COVID-19, looks to sell company to Aéropostale owner. Is your store closing? – USA TODAY

, USA TODAY
Published 10:04 p.m. ET July 3, 2020 | Updated 10:21 p.m. ET July 3, 2020

CLOSE

Democratic Presidential candidate Joe Biden says the latest jobs report should not be a ‘victory to be celebrated’ by President Donald Trump while the coronavirus pandemic is on the rise. (July 2)

AP Domestic

The coronavirus pandemic has led another retailer to file for bankruptcy.

Lucky Brand Dungarees LLC, which has about 200 Lucky Brand stores in North America and sells its products in department stores, announced it had filed for Chapter 11 bankruptcy protection Friday with plans to sell the equity-backed business to the SPARC Group, operator of Aéropostale and Nautica.

The company also plans to close at least 13 stores in bankruptcy, it said in a news release.

“The COVID-19 pandemic has severely impacted sales across all channels,” said Matthew A. Kaness, interim CEO and executive chairman, in a statement. “While we are optimistic about the reopening of stores and our customers’ return, the business has yet to recover fully.”

Save better, spend better:  Money tips and advice delivered right to your inbox. Sign up here

The Los Angeles-based business is owned by Leonard Green & Partners LP, which owes $182 million to lenders and $79 million to vendors, according to court records, which were filed in U.S. Bankruptcy Court in Wilmington, Delaware.

Face mask requirements: Can stores make you wear a mask? Do kids have to wear masks?

COVID-19 cancellation: 7-Eleven’s Free Slurpee Day is canceled due to COVID-19, but here’s how to get a free frozen drink

As many as 25,000 stores could shutter this year as businesses continue to feel the impacts of the pandemic, according to a recent report from Coresight Research.

COVID-19 has hit retailers who were already in debt harder than others and bankruptcy filings have increased due to the pandemic with J.C. PenneyNeiman Marcus, Tuesday Morning, GNC and J. Crew filing for Chapter 11.

Other retailers, who haven’t filed for bankruptcy, also plan to shutter locations, including Victoria’s SecretNordstrom and Signet Jewelers, parent company of Kay, Zales and Jared.

Lucky Brand store closings 2020

The following stores were listed in the bankruptcy filing as “initial closing stores.”

Arkansas Lucky Brand store closing

  • Little Rock: 11201 Bass Pro Parkway

California closing Lucky Brand stores

  • Arvin: 5701 Outlets at Tejon Ranch Parkway
  • Long Beach: 5267 2nd St.
  • Thousand Oaks: 350 W. Hillcrest Dr.

Connecticut Lucky Brand closing store

  • West Hartford: 1500 New Britain Ave.

Florida Lucky Brand store closures

  • Dania Beach: 1763 Pointe Blvd.
  • Orlando: 4200 Conroy Rd.
  • Sarasota: 140 University Town Center Dr.

Illinois Lucky Brand closing store

  • Chicago: 520 N Michigan Ave.

Michigan Lucky Brand store closure

  • Troy: 2800 Big Beaver

Mississippi Lucky Brand store closure

  • Ridgeland: 1000 Highland Colony Parkway

Nevada Lucky Brand closing store

  • Las Vegas: 1955 Festival Plaza Dr.

Puerto Rico Lucky Brand closure

  • San Juan: 1000 The Mall of San Juan Blvd.

Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko

Read or Share this story: https://www.usatoday.com/story/money/2020/07/03/covid-19-store-closings-lucky-brand-coronavirus-impact/5366437002/

Read More