The hope for the retailer Lucky Brand Dungarees is that a new owner will help revive its fortunes.
The thirty-year-old denim brand has filed for Chapter 11 bankruptcy protection after blaming its troubles on the Covid-19 pandemic, with initial plans to close at least 12 stores.
“Despite the company’s best efforts and support of its economic stakeholders, the company’s restructuring efforts were derailed by a combination of the economic impact of the global Covid-19 pandemic, which resulted in extended closures of its retail stores, and limited liquidity, which diminished access to new inventory from its vendors,” Mark Renzi, Chief Restructuring Officer, said in court documents.
“We have made many difficult decisions to preserve the company’s viability during these unprecedented times,” said Matthew Kaness, who was named interim CEO in September and Executive Chairman in January. “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.”
