Popular lifestyle retail chain files for Chapter 11 bankruptcy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

The high-end fashion retail sector has faced economic challenges since the Covid-19 pandemic temporarily shut down the industry in 2020, and it hasn’t fully recovered from the retail downturn.

Financial distress forced luxury department stores, high-end fashion retailers, luxury brands, and retail chains to file for bankruptcy.

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Luxury department store Lord & Taylor, high-end retailer Neiman Marcus, luxury apparel chain Brooks Brothers, and designer brand manufacturer Centric Brands all filed for Chapter 11 protection in 2020.

When the pandemic subsided, rising labor and product costs driven by inflation, higher interest rates on debt, and consumers’ changing attitudes toward spending based on financial uncertainties put new pressure on revenue

Luxury retailers continued filing for bankruptcy, as last year, Anne Fontaine USA, the U.S. affiliate of the Paris-based boutique chain, in January 2024 filed for Chapter 11 Subchapter V bankruptcy protection to reorganize in the U.S. Bankruptcy Court for the Southern District of New York, asserting that the company has not been able to recover from financial distress caused by the Covid-19 pandemic.

High-end brands file for bankruptcy

Luxury apparel chain Ted Baker Canada, which operated 31 Ted Baker stores in the U.S., nine in Canada, eight Brooks Brothers Canada shops, and seven Lucky Brand Canada stores, filed for restructuring under Canada’s Companies’ Creditors Arrangement Act and for Chapter 15 bankruptcy in the U.S. on April 24, 2024, to liquidate and close all 56 of the North American stores.

The retailer’s owner Authentic Brands Group in August 2024 reached an agreement with United Legwear & Apparel Co. to relaunch e-commerce retail operations for Ted Baker in the U.S., Canada, the U.K., and Europe.

Fashion retail brand Sash Group Inc., which markets and sells The Sash Bag crossbody handbags and accessories, on March 25, 2025, filed for Chapter 11 protection to reorganize its business, facing significant tax obligations and unsecured creditor debt.

Karma and Luck files for bankruptcy protection.

Image source&colon; Getty/TheStreet

Karma and Luck files for bankruptcy

Finally, the parent company of high-end specialty retail chain Karma and Luck filed for Chapter 11 bankruptcy to restructure its debt.

The Las Vegas-based company Zama & Zama Inc., whose retail chain sells spiritual and good fortune-themed merchandise for men and women, filed its petition in the U.S. Bankruptcy Court for the District of Nevada, listing $1 million to $10 million in assets and liabilities.

More bankruptcy:

Its largest creditors include $2.56 million owed to Settle Inc., $498,000 owed to American Express, over $231,000 owed to landlord IMI Miracle Mile, over $83,000 owed to landlord New WTC Retail Owner and other mall operators.

The debtor, founded in 2015 by Vladi Bergman, operates 12 brick-and-mortar high-end retail locations in Las Vegas, Los Angeles, Houston, Florida, and New York.

The retailer operates in several high-profile buildings, including at the World Trade Center and Grand Central Terminal in New York, Houston Galleria, Fashion Show Mall in Las Vegas, and the Mall at Miami International.

Karma and Luck’s merchandise includes women’s bracelets, necklaces, rings, earrings, charms, anklets, lifestyle items like pillow and blanket sets; men’s bracelets, necklaces, and charms; and home decor.

The company’s merchandise is also available through major department store retailers, such as Macy’s and Nordstrom, and it offers e-commerce transactions on its website.