Lucky Brand Dungarees LLC prepares themselves to file for bankruptcy due to the unpredicted circumstances caused by the pandemic, yet again. They plan to close to at least 13 stores, and but sell their investment business to the director of Aeropostale.
Documents from Bankruptcy Court in Wilmington, Delaware show the owner of the Los Angeles franchise owes lenders $182 million and owes his merchandise vendors $79 million. An underdog company, SPARC Group LLC, from the director of Aeropostale has inquired about buying the investment. The requirements for a bid are $140.1 million in cash and a credit bid of $51.5 million by its lenders.
The co-owners of the SPARC group are Authentic Brands Group LLC and Simon Property Group who are masterminds behind the strategy to bid for the sinking company. With plans to team up and take over the troubling store, the two owners previously bought Forever 21 who also recently filed for bankruptcy.
Not sure how to file for bankruptcy? Contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.