The global pandemic has been tough on the general population but it continues to be a major hurdle for restaurants, retailers, and small businesses. One brand that’s just filed for Chapter 11 bankruptcy is notable denim retailer Lucky Brand Dungarees.
According to BOF, Lucky plans to continue operations during the Chapter 11 process and has plans to sell the company to the owner of Aéropostale and Nautica.
Global News reports that the brand plans to close 13 stores but that number could go up throughout the whole process. Lucky Brand currently operates 200 stores but it also sells products in other stores like Costco, Nordstrom, and Hudson’s Bay.
While COVID-19 proves to be a major hurdle for retail, it wasn’t just the pandemic that hurt Lucky. The chain was hurt by a shift from customers who weren’t shopping at brick-and-mortar stores anymore. That paired with the mandatory store closures due to the virus sealed Lucky’s fate.
Global also says that Lucky Brand at the start of the year had 3,000 employees but after stores closed due to COVID, it furloughed 2,700 of them.
Now that stores are reopening, the chain has brought back just 900.
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