Apparel company Lucky Brand Dungarees is filing for Chapter 11 bankruptcy, it said on July 3, becoming the latest retailer to fall victim to the coronavirus pandemic.

The firm said it had entered into a “stalking horse asset purchase agreement” with SPARC Group LLC, which owns brands such as Aeropostale and Nautica, for the sale of “substantially all” its operating assets.

Such a pact sets a starting bid or minimally accepted offer as a threshold for other potential buyers if they want to bid.

Lucky Brand estimated both assets and liabilities in the range of $100 million to $500 million, its filing in the U.S. Bankruptcy Court of Delaware showed.

A view of a temporarily closed JCPenney store at The Shops at Tanforan Mall in San Bruno, Calif., on May 15, 2020. (Justin Sullivan/Getty Images)

The Neiman Marcus store is seen during the outbreak of the coronavirus in New York City, on April 19, 2020. (Jeenah Moon/Reuters)

“The COVID-19 pandemic has severely impacted sales across all channels,” the firms interim chief executive, Matthew Kaness, said in the statement.

“While we are optimistic about the reopening of stores and our customers return, the business has yet to recover fully.”

ABG-Lucky, a newly-formed unit of Authentic Brands GRead More – Source