Lucky Brand originally filed for Chapter 11 bankruptcy in July after an abysmal first quarter, largely caused by the COVID-19 pandemic. With lockdowns in place and American wallets tight on cash, it is no wonder that the brand has struggled to keep pace with the rapidly changing economic reality.
On top of Lucky Brand, Sparc also acquired Brooks Brothers in a deal earlier this week. The retailer was purchased for $325 million in order to keep the doors open on at least 125 stores.
As more retailers continue to face hardship, it is entirely plausible to think that we will see increasing numbers of large deals like the ones made for Lucky Brand and Brooks Brothers. Big capital investments are likely the saving grace for ailing companies.
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