Lord & Taylor has posted about $$137.9 million in debt.
The coronavirus pandemic has become a difficult test for the retail market. And for a number of major players, this difficult period was the last straw. Store closures and bankruptcies have already been announced JC Penney, J. Crew, Brooks Brothers, Ascena, Neiman Marcus and dozens of others. A new name on this list is Lord & Taylor, the oldest department store chain in the United States, founded in 1826 by two immigrants from England.
The chain stores were closed back in March due to the quarantine regime, but not all of them will be able to open again. On August 2, the company filed for bankruptcy under Chapter 11 of the US Bankruptcy Code. According to the established procedure, a plan for the reorganization of the retail network will be drawn up, which the company will adhere to under the supervision of the court. Lord & Taylor will have to pay off debts in the amount of about $137.9 million.
Together with Lord & Taylor, the current owner of the retailer also filed for bankruptcy, Le Tote Company, a fashion rental company that acquired the department store chain from Hudson's Bay in August 2019. The company plans to reduce the number of Lord & Taylor department stores, of which there are currently 38. Le Tote is also planning significant changes in its own strategy. In particular, a network of luxury studios for trying on clothes and rental points will be developed, and it is also planned to create subscription services for beauty products.