The iconic American retailer Lord & Taylor, which has been a cornerstone of the retail industry since 1826, has officially filed for bankruptcy protection under Chapter 11 due to the financial strain caused by the coronavirus pandemic. This decision marks a significant development in the retail sector, as one of the oldest department stores in the country joins a growing list of established brands facing financial difficulties in the current economic climate.
In its bankruptcy filing with the US Bankruptcy Court for the Eastern District of Virginia, Lord & Taylor disclosed that its assets and liabilities are estimated to be in the range of $100 million to $500 million. The company, which has a long history of providing high-quality fashion and curated shopping experiences, had explored various options before concluding that filing for bankruptcy was the most viable path forward.
Like other retailers such as J Crew Group, JC Penney, Neiman Marcus, and Lucky Brand, Lord & Taylor is now in the midst of navigating the complex bankruptcy process. With the uncertainties surrounding the future of brick-and-mortar stores and shifting consumer preferences, the iconic retailer faces challenges in restructuring its operations and finances to emerge stronger from the bankruptcy proceedings.
Last year, Lord & Taylor was acquired by the fashion rental service start-up Le Tote in a deal valued at C$100 million ($74.62 million). Despite this acquisition, Hudson’s Bay Company, the previous owner, retained ownership of some of Lord & Taylor’s real estate and continued to cover the substantial rent payments for the stores.
As Lord & Taylor grapples with the impact of bankruptcy, the retailer had already planned to liquidate inventory from its 38 department stores once restrictions were eased. Known for its elegant displays and premium offerings, Lord & Taylor has a deep-rooted legacy that stretches back to its founding by two English immigrants in New York City. However, the company now faces an uncertain future as it adapts to the changing dynamics of the retail industry.
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