Lord & Taylor has joined the list of stores who have filed bankruptcy protection on Sunday in the Eastern Court of Virginia.
What We Know:
- Lord & Taylor is one of the world’s oldest department stores. As listed on their website, the company says they are looking for a new owner. Before the pandemic hit, Lord & Taylor had already struggled with the shift of online shopping. The company sold its flagship building on New York’s Fifth Avenue last year after more than a century in the 11-story building.
- Lord & Taylor wrote a message to their customers stating, “Today, we announced our search for a new owner who believes in our legacy and values. Part of our announcement also includes filing for Chapter 11 protection to overcome the unprecedented strain the COVID-19 pandemic has placed on our business.” The company will be closing 19 of its stores but says they will try to safely reopen their existing locations.
- The company has locations in Farmington, Conn.; Bala Cynwyd, Penn.; Boston, Mass.; Bay Shore, NY; Northbrook, Ill.; Kensington, Md.; Novi, Mich.; Wayne, NJ; Boca Raton, Fla.; Fairfax, Va.; Danbury, Conn.; Buffalo, NY; Trumbull, Conn.; Natick, Mass.; Albany, NY; Syracuse, NY; Rochester, NY; Yonkers, NY and Columbia, Md.
- It was bought by French rental clothing company Le Tote in 2019 for $75 million. They will continue marketing throughout the summer and received consent to use cash collateral from secured lender to continue operations and pay their 651 employees. According to the filling, Le Tote has funded debt obligations roughly around $137.9 million dollars.
According to NBC News, many companies have filed for Chapter 11 amid the pandemic. 40 retail stores, as of July have filed for Chapter 11 bankruptcy this year.
