Simon Property Group (NYSE: SPG), the largest shopping mall operator in the U.S. along with Authentic Brands Group have been awarded by bankruptcy court ownership of denim maker Lucky Brands for a total of $140.1 Million.
The two companies partnership, known as Sparc, revealed on Thursday that they are prepared to take over as licensee and operating partner for Lucky. Sparc will be managing the sourcing, product design and development, overseeing all of Lucky’s North American stores and e-commerce business.
Lucky holds over 175 locations within North America, additionally its goods can be found in various department stores such as Macy’s. The denim company was forced to file for Chapter 11 bankruptcy protection in July, amid the growing economic downturn the retail industry has been subjected to, in the face of the global coronavirus pandemic.
According to a press release – ABG – a brand development, licensing and entertainment company, will own Lucky’s intellectual property as well as manage all of the brands licensing partnerships, incoming business and its brand development.
“This acquisition will boost the value of our portfolio to more than $13 billion in global retail sales annually,” ABG founder and Chief Executive 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.”
Sparc announced it will be dealing with landlords to maintain “key stores” open in North America. However, it did not make clear how many Lucky stores were to be kept in business.