Lord & Taylor's chain of stores announced that it had about $137.9 million in debt obligations.
The Coronavirus Pandemic was a challenging test for the retail market. And for several major players, this difficult period was the last straw. Shop closures and bankruptcies have already been announced by J.C. Penney, J. Crew, Brooks Brothers, Ascena, Neiman Marcus, and dozens of others. Another name on this list is the oldest U.S. chain of department stores, Lord & Taylor, founded in 1826 by two immigrants from England.
The stores were closed in March due to the quarantine regime, but not all of them will be able to re-open. On August 2, the company filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code. Following established procedures, a reorganization plan for the retail network will be drawn up, which the company will adhere to under court supervision. Lord & Taylor will have to pay off debts worth about $137.9 million.
Together with Lord & Taylor, it filed for bankruptcy and is the current owner of the retailer, Le Tote, a company specializing in fashion rental clothing, which in August 2019 acquired a chain of department stores in Hudson's Bay. The company plans to reduce the number of department stores Lord & Taylor, which currently stands at 38. Le Tote also intends to make significant changes to its strategy. It will also develop a network of luxury studios for fitting clothes and rental outlets and plans to create subscription services for beauty products.