Lucky Brand made jeans for 30 years — then PE debt and COVID killed it

Lucky Brand was founded in 1990 by Gene Montesano and Barry Perlman in Los Angeles, building a premium denim label that captured the relaxed West Coast aesthetic of the era. By the 2000s, Lucky Brand jeans had become a wardrobe staple — sold through 200+ company-owned stores, outlet locations, wholesale accounts and its e-commerce site. The brand was known for its signature embroidery, fabric patches and a casual look that defined American denim for a generation.

In December 2013, private equity firm Leonard Green & Partners acquired Lucky Brand. The deal loaded the company with debt. Same-store sales declined for years as the denim market shifted toward premium raw selvedge and leggings replaced jeans in women's wardrobes. By 2019, Lucky Brand was struggling with $180 million in debt and interest payments that consumed cash flow needed for store investment and marketing.

When COVID-19 shut down retail in March 2020, Lucky Brand lost its primary sales channel. With 200 stores generating no revenue and $180 million in debt service continuing, the company filed for Chapter 11 bankruptcy on 3 July 2020. SPARC Group — a joint venture of Simon Property Group and Authentic Brands Group — acquired Lucky Brand for $140.1 million in cash plus $51.5 million in credit. The brand survived, but the original founders and PE owners were wiped out.