The coronavirus pandemic has driven another retailer to petition for financial protection.
Fortunate Brand Dungarees LLC, which has around 200 Lucky Brand stores in North America and sells its items in retail establishments, reported it had petitioned for Chapter 11 insolvency insurance Friday with plans to sell the value sponsored business to the SPARC Group, administrator of Aéropostale and Nautica.
The organization additionally plans to close in any event 13 stores in chapter 11, it said in a news discharge.
“The COVID-19 pandemic has seriously affected deals over all channels,” said Matthew A. Kaness, break CEO and official director, in an announcement. “While we are hopeful about the reviving of stores and our clients’ arrival, the business still can’t seem to recoup completely.”
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The Los Angeles-based business is claimed by Leonard Green and Partners LP, which owes $182 million to loan specialists and $79 million to sellers, as indicated by court records, which were documented in U.S. Chapter 11 Court in Wilmington, Delaware.
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Upwards of 25,000 stores could screen this year as organizations keep on feeling the effects of the pandemic, as per an ongoing report from Coresight Research.
COVID-19 has hit retailers who were at that point owing debtors harder than others and chapter 11 filings have expanded because of the pandemic with J.C. Penney, Neiman Marcus, Tuesday Morning, GNC and J. Group petitioning for Chapter 11.
Different retailers, who haven’t sought financial protection, additionally plan to shade areas, including Victoria’s Secret, Nordstrom and Signet Jewelers, parent organization of Kay, Zales and Jared.