A pedestrian walks past a Lucky Brand retail store in Corte Madera, California on July 6, 2020. Los Angeles-based Lucky Brand Dungarees announced that it has filed for bankruptcy because the company has millions in debt. The retailer will close 13 of its 200 retail stores.
Justin Sullivan | Getty Images
A team made up of US largest shopping mall owner Simon Property Group and apparel licensing company Authentic Brands Group was selected as winners by a bankruptcy court to acquire denim maker Lucky Brand for $ 140.1 million.
The two – in a company called Sparc – announced on Thursday evening that they would take on the role of main licensee and operating partner for Lucky. They oversee sourcing, product design and development, and run all North American retail stores and their branch e-commerce business.
Lucky has more than 175 stores in North America, and its wares are also commonly found in department stores like Macy's. The clothing brand filed for Chapter 11 bankruptcy protection in early July and fell victim to the pain inflicted on retail outlets during the coronavirus pandemic.
ABG, which has acquired a number of retailers over the years including Barneys New York and Nine West, will own Lucky's intellectual property and oversee all licensing partnerships, new business and brand development, according to a press release.
"This acquisition will increase the value of our portfolio to global retail sales of more than $ 13 billion per year," said Jamie Salter, founder and chief executive officer of ABG, in a statement. "Lucky Brand's DNA is resonating with today's youth and we see a tremendous opportunity to unleash its value in key areas around the world."
It was not immediately clear how many Lucky stores Sparc ultimately wants to keep open for business.
It said it would negotiate with landlords to keep "key deals" open in North America.
Sparc was named a winning bidder for bankrupt menswear retailer Brooks Brothers earlier this week to keep at least 125 Brooks Brothers stores open.