Lucky Brand Dungarees signs asset purchase agreements
In connection with the transaction, ABG-Lucky LLC, a freshly fashioned subsidiary of Authentic Models Group, will purchase all the mental home assets of Lucky Brand.
In addition to coming into into the asset buy arrangement with SPARC, Lucky Brand and certain of its affiliate marketers also entered into a ‘back-up’ asset buy arrangement for the sale of the company’s and such affiliates’ mental home and certain other assets to ABG-Lucky, which will only arrive into effect if the asset buy arrangement with SPARC terminates beneath certain situations.
To facilitate the sale and cut down its financial debt burden triggered by new problems, which include the COVID-19 pandemic, Lucky Brand has initiated proceedings beneath Chapter eleven of the US Individual bankruptcy Code in the district of Delaware, the business reported in a press release.
Lucky Brand has been given new funding commitments from certain of its existing lenders that will present enough liquidity to fund the business by means of the closing of the sale.
Lucky Brand will be operating its business in the everyday course in the course of the Chapter eleven process, and the extensive vast majority of its outlets, e-commerce system and wholesale business keep on being open to provide clients.
Fibre2Fashion News Desk (DS)
Lucky Brand Dungarees, Los Angeles-dependent designer and retailer of iconic American denim and apparel, a short while ago declared it has entered into a stalking horse asset buy arrangement with SPARC Group, a foremost global operator of way of life makes, which include Aéropostale and Nautica, for the sale of considerably all of the company’s operating assets.