Lord + Taylor, Tailored Brands File for Bankruptcy Protection
Lord + Taylor, one of America's oldest department stores, has filed for bankruptcy, joining a growing list of stores slammed by the coronavirus pandemic. In addition, Tailored Brands, the parent company of Men's Wearhouse and JoS. A. Bank, also filed for bankruptcy.
Lord + Taylor, which was sold to rental clothing company Le Tote last year, filed Sunday for bankruptcy protection. In a statement, Le Tote announced that it would also solicit bids for sale of both its Le Tote and Lord + Taylor businesses, and will conduct targeted store closing sales to maximize the value of its business. Both Le Tote and Lord + Taylor will continue to operate during the Chapter 11 process, Le Tote said. Lord + Taylor's roots date to 1826, and it's considered the oldest department store in the country. It has 38 stores in the U.S., and had $253.5 million in revenue in 2019. It entered bankruptcy with 651 employees and $137.9 million in debt, according to The Wall Street Journal.
Tailored Brands, which filed for Chapter 11 protection on Sunday in the Southern District of Texas, said it would continue to operate Men’s Wearhouse and JoS. A. Bank stores, along with K&G Fashion Superstore and Moores Clothing for Men, which it also owns. It said in a release that a restructuring plan is expected to reduce the company’s funded debt by at least $630 million and provide increased financial flexibility.
Total Retail's Take: Another day, another retail bankruptcy filing. And, like many of the roughly 40 retailers that have filed for bankruptcy protection during the coronavirus pandemic, Lord + Taylor and Tailored Brands were already struggling with the shift to online shopping and the movement towards more casual dressing even before the pandemic struck this spring. With many corporate offices closed and employees working from home, this trend has only accelerated in recent months. Other retailers that have filed for bankruptcy protection during the pandemic include Brooks Brothers, J.Crew, J.C. Penney, Neiman Marcus, Stage Stores, and Ascena Retail Group, which owns Lane Bryant and Ann Taylor.