SPARC Group’s Acquisition of Lucky Brand Assets

Paul, Weiss, Rifkind, Wharton & Garrison advised SPARC Group LLC and Authentic Brands Group LLC on the deal. Choate represented Wells Fargo in its capacity as administrative agent under the third amended and restated credit agreement in connection with the bankruptcy proceedings of Lucky Brand Dungarees.

Lucky Brand Dungarees, LLC, the Los Angeles based designer and retailer of iconic American denim and apparel, has entered into a stalking horse asset purchase agreement with SPARC Group LLC, a leading global operator of lifestyle brands including Aéropostale and Nautica, for the sale of substantially all of the Company’s operating assets.

In connection with the transaction, ABG-Lucky LLC, a newly formed subsidiary of Authentic Brands Group LLC, a brand development, marketing, and entertainment company, which owns a global portfolio of entertainment, media, and lifestyle brands will acquire all the intellectual property assets of Lucky Brand.

Lucky Brand has initiated chapter 11 proceedings in the District of Delaware to facilitate the sale and reduce its debt burden.

The Paul, Weiss team included corporate partners Ted Ackerman (Picture) and Robert Schumer; restructuring partners Kelley Cornish and Brian Hermann and counsel Brian Bolin; intellectual property partner Claudine Meredith-Goujon; tax partner David Sicular; real estate partner Peter Fisch; employee benefits counsel Reuven Falik; and antitrust counsel Yuni Sobel.

Choate represented Wells Fargo, as administrative agent, with Partner Kevin J. Simard, Partner & Hiring Co-Chair Jennifer Conway Fenn, Associate Saige Jutras Oftedal, and Associate Brigid K. Bowser.

Involved fees earner: Brigid Bowser – Choate; Jennifer Conway Fenn – Choate; Saige Jutras – Choate; Kevin Simard – Choate; Edward Ackerman – Paul Weiss Rifkind Wharton & Garrison; Brian Bolin – Paul Weiss Rifkind Wharton & Garrison; Kelley Cornish – Paul Weiss Rifkind Wharton & Garrison; Reuven Falik – Paul Weiss Rifkind Wharton & Garrison; Peter Fisch – Paul Weiss Rifkind Wharton & Garrison; Brian Hermann – Paul Weiss Rifkind Wharton & Garrison; Claudine Meredith-Goujon – Paul Weiss Rifkind Wharton & Garrison; Robert Schumer – Paul Weiss Rifkind Wharton & Garrison; David Sicular – Paul Weiss Rifkind Wharton & Garrison; Yuni Sobel – Paul Weiss Rifkind Wharton & Garrison;

Law Firms: Choate; Paul Weiss Rifkind Wharton & Garrison;

Clients: Authentic Brands Group (ABG); SPARC Group; Wells Fargo;

Author: Ambrogio Visconti