// Lord & Taylor files for Chapter 11 protection
// Owner of the department store chain, Le Tote, also filed for bankruptcy
Lord & Taylor has become the latest major US retailer to file for bankruptcy as the Covid-19 pandemic took its toll on trading.
The luxury department store chain filed for Chapter 11 protection on Sunday, according to documents from the US Bankruptcy Court for the Eastern District of Virginia, along with its owner, French fashion rental subscription service Le Tote.
Le Tote acquired Lord & Taylor in 2019 from Canadian retailer Hudson’s Bay Company (HBC) in a deal worth CA $99.5 million (£56.8 million).
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The deal meant Le Tote assumed operations of Lord & Taylor’s 38 stores and all digital channels.
HBC agreed to maintain economic responsibility for the rent payments owed by Lord & Taylor for the initial three years post-closing.
At the beginning of 2019, Lord & Taylor closed its New York flagship store which it had opened back in 1914.
The store closure came as a result of struggling to keep up with consumers’ increasing shift to online shopping.
The retailer joins the likes of fellow major Us retailers JC Penney, J.Crew and Neiman Marcus which have all filed for bankruptcy during the pandemic.
Moreover, menswear retailer Brooks Brothers filed for bankruptcy protection in early July as it sought court protection from creditors to seek a new buyer.
Brooks Brothers, which is known for its suits, had already shut some stores and prepared to close its US factories.
The sale of the business was being explored as a possibility before the pandemic struck, and it expected to complete the process in the next few months.
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