Lucky Brand Acquired by Group Including ABG and Simon Property
After a month following downtown Los Angeles–headquartered Lucky Brand Jeans’ chapter 11 bankruptcy filing, the stalking-horse bidders Authentic Brands Group and Simon Property Group completed a deal to acquire the prominent jeans brand and retailer, according to an Aug. 14 ABG announcement.
Lucky Brand was acquired for about $140 million, according to media reports. Lucky Brand’s business will be handled by the SPARC Group, LLC. This company has served as an operator that licenses brands such as Aéropostale and Nautica from ABG.
SPARC will serve as the core licensee and operating partner for Lucky Brand, said Jamie Salter, ABG’s founder, chairman and chief executive officer. ABG will own Lucky Brand’s intellectual property in addition to handling licensing partnerships and brand development. SPARC and ABG will work together to handle Lucky’s social media, emerging platforms and digital activations, Salter said.
“This acquisition boosts the value of our portfolio to more than $13 billion in global retail sales annually. 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. With ABG’s social-media expertise and content-development capabilities, we are ready to hit the ground running and expand quickly into new categories and markets,” Salter said.
SPARC and ABG have been on a buying spree. After filing for chapter 11 bankruptcy in July, Brooks Brothers, the New York–headquartered suiting brand that had clothed U.S. presidents and generations of Wall Street executives, announced on Aug. 11 that ABG and SPARC would acquire the brand for $325 million. In the past year, ABG has acquired retailers Barneys New York and Forever 21.