To facilitate the sale of the company and reduce its debt, Lucky Brand has initiated Chapter 11 proceedings and will continue to operate its business as usual during the bankruptcy process, with the vast majority of its stores, e-commerce platform, and wholesale business remaining open as it continues to explore buyers.
Matthew A. Kaness, appointed as interim CEO of Lucky Brand in September 2019, and also executive chairman in January 2020, said, “The COVID-19 pandemic has severely impacted sales across all channels. While we are optimistic about the reopening of stores and our customers’ return, the business has yet to recover fully. We have made many difficult decisions to preserve the company’s viability during these unprecedented times. 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. We remain committed to our associates, vendors, and business partners, and appreciate the continued support through this process.”
Lucky Brand has filed a number of customary motions with the U.S. Bankruptcy Court seeking authorization to support its operations during the process, including the authority to continue payment of employee wages and maintain health care benefits.
