Lord & Taylor explores bankruptcy

It hasn't been a bright couple of years for Lord & Taylor, and the global coronavirus pandemic isn't helping. When their New York flagship store closed, that was a major blow to the retailer. Now, the department store chain is exploring the possibility of bankruptcy as their 38 stores remain closed due to the coronavirus pandemic.

Bankruptcy is just one of several options that the retailer and its advisers are exploring. They are also trying to negotiate relief from creditors and find outside financing.

Last year, fashion rental service Le Tote acquired Lord & Taylor from Hudson's Bay Co. for 100 million dollars. Hudson's Bay still retains ownership of Lord & Taylor's real estate and handles responsibility for its rent payments. A spokeswoman for Le Tote has confirmed Lord & Taylor is exploring options, but would not expand further on the topic.

Like many retail companies whose primary sales come from brick-and-mortar, Lord & Taylor has lost massive amounts of sales dollars as people are unable to shop. Closed businesses across the country have also left people with not only less of a need to shop but less money to shop. Fellow department store chain Neiman Marcus is on the brink of bankruptcy right now, and Macy's has tapped Lazard for capitalization so they can stay afloat. It continues to be a tough time for fashion as lockdowns have extended in many major states, including New York and California, which are both home and key markets for many fashion companies.

photo: via Lord & Taylor Facebook page