All items at all 38 shops of Lord & Taylor are being sold off in a going-out-of-business sale, marking an end to the 200-year-old business and first department store in the United States, the company announced on Thursday.
A Chapter 11 bankruptcy protection had been filed by the iconic U.S. retail group's parent company Le Tote on August 2, in what market observers viewed as a possible move toward liquidation.
The struggling company's disclosure is a reversal from last week's proposal to keep 14 branches operating. In a statement, Lord & Taylor's chief restructuring officer, Ed Kremer, said while they're still open to opportunities, the company believes putting the remainder of the shops into liquidation is the most sensible decision.
Le Tote acquired Lord & Taylor from Canadian department store chain Hudson's Bay nearly a year ago for roughly $100 million. Lord & Taylor is among multiple retail bankruptcies that were filed in the U.S., joining a string of upscale retailers like JCPenney, Stein Mart, and Neiman Marcus, since the coronavirus crisis broke out.
The Chapter 11 filing is also part of Lord & Taylor's strategy to optimize "value of inventory" for the property while it works on alternatives for its brands, Kremer said, adding that he is "humbled and grateful" for the commitment and hard work that the entire staff of the company has shown over the years.
Lord & Taylor had initially revealed it was pulling the plug on 19 shops, then announced it was increased the figure to 24 a couple of weeks later. All of its businesses will close for good starting Thursday.
The retailer was a household name in sophisticated fashion. Lord & Taylor unveiled its first shop in New York in 1826. British immigrants Samuel Lord and George Washington Taylor formed the company and launched their first branch in New York almost 200 years ago.
Fart forward to the present, the department store business has become the proverbial sitting duck because of various evolving elements that include the growing appeal of online shopping, which has caused foot traffic at malls to plummet, and the nasty effects of the coronavirus.
