American fashion brands Lucky Brand and G-Star Raw filed for bankruptcy and joined the so-called "march of bankruptcy" retailers.
U.S. fashion brands Lucky Brand and G-Star Raw have filed for bankruptcy and joined the so-called "march of bankruptcy retailers" amid a difficult epidemiological situation and the closure of retail stores across the country starting in spring 2020.
Lucky Brand signed a deal to sell the intellectual property of Authentic Brands Group for at least $140 million. The bankruptcy auction is expected to be completed by mid-August this year. As part of the transaction, the company will also sell its operating assets to Sparc Group, which manages the Aéropostale and Nautica brands from the Authentic Brands portfolio.
Earlier this year, denim apparel manufacturer and retailer G-Star Raw filed for bankruptcy after failing to reach an agreement with the landlords to reduce downtime charges. The company has about 30 stores under its management. In its statement, the company notes that the global impact of the pandemic continues to hurt business. At the same time, G-Star Raw expects to resume its profitable stores in the coming months.
Lucky Brand currently operates 112 stores and 98 outlets in North America. In the event of bankruptcy, the company expects to close 12 retail outlets with "onerous, unexpired leases" that will be sold to the public. Like other retailers, the company is facing a new supply of goods due to limited sources of income.
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