Mall owner Simon Property and Authentic Brands buy denim retailer Lucky Brand for US$140mBusiness | 14 Aug 2020 9:28 pm
The biggest U.S. mall owner Simon Property Group and apparel licensing firm Authentic Brands Group have been tapped by a bankruptcy court as the winning bidder to acquire denim maker Lucky Brand Dungarees for US$140.1 million.
The two — in a venture known as Sparc — announced Thursday evening they are set to assume the role of core licensee and operating partner for Lucky, overseeing all sourcing, product design and development, running all of the retailer’s stores in North America and its e-commerce business.
Lucky has more than 175 stores in North America, and its merchandise is also often found in department stores like Macy’s. The clothing brand filed for Chapter 11 bankruptcy protection in early July, falling victim to the pain that has been inflicted upon the retail industry
ABG, which has acquired a number of retailers over the years including Barneys New York and Nine West, will own Lucky’s intellectual property and oversee all licensing partnerships, new business and brand development, the press release said.
“This acquisition will boost the value of our portfolio to more than US$13 billion in global retail sales annually,” ABG Chief Executive and Founder Jamie Salter said in a statement. “Lucky Brand’s DNA resonates strongly with today’s youth and we see tremendous opportunity to unlock its value in key territories around the world.”
It was not immediately clear how many Lucky stores Sparc ultimately plans to keep open for business.
It said it will negotiate with landlords to keep “key stores” open in North America.
Sparc earlier this week was named the successful bidder for bankrupted men’s suit maker Brooks Brothers, in a US$325 million deal to keep at least 125 Brooks Brothers stores open