Denim retailer Lucky Brand Dungarees has filed for bankruptcy protection, blaming its troubles in part on the coronavirus pandemic, and said it has a deal lined up to sell the company.
Lucky said it plans to close 13 stores and could shutter more during the bankruptcy process. No closures are planned in Massachusetts, where Lucky has several mall stores.
Los Angeles-based Lucky filed for Chapter 11 protection on Friday in federal bankruptcy court in Delaware.
In a court filing, chief restructuring officer Mark Renzi described a proposal to sell Lucky to buyers led by apparel retail operator SPARC Group for $140.1 million in cash and $51.5 million in credit. Lucky said the offer would preserve much or all of the company’s current network of stores.