Lucky Brand Dungarees signs asset purchase agreements

07 Jul '20

2 min read

Pic: Lucky Brand

Lucky Brand Dungarees, Los Angeles-based designer and retailer of iconic American denim and apparel, recently announced it has entered into a stalking horse asset purchase agreement with SPARC Group, a leading global operator of lifestyle brands, including Aéropostale and Nautica, for the sale of substantially all of the company's operating assets.

In connection with the transaction, ABG-Lucky LLC, a newly formed subsidiary of Authentic Brands Group, will acquire all the intellectual property assets of Lucky Brand.

In addition to entering into the asset purchase agreement with SPARC, Lucky Brand and certain of its affiliates also entered into a ‘back-up’ asset purchase agreement for the sale of the company's and such affiliates' intellectual property and certain other assets to ABG-Lucky, which will only come into effect if the asset purchase agreement with SPARC terminates under certain circumstances.

To facilitate the sale and reduce its debt burden caused by recent challenges, including the COVID-19 pandemic, Lucky Brand has initiated proceedings under Chapter 11 of the US Bankruptcy Code in the district of Delaware, the company said in a press release.

Lucky Brand has received new financing commitments from certain of its existing lenders that will provide sufficient liquidity to fund the business through the closing of the sale.

Lucky Brand will be operating its business in the ordinary course during the Chapter 11 process, and the vast majority of its stores, e-commerce platform and wholesale business remain open to serve customers.

Fibre2Fashion News Desk (DS)

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