THE OLDEST DEPARTMENT STORE OF THE USA DECLARED BANKRUPTCY

One of the oldest department stores of the United States operating in the luxury segment went bankrupt. The Lord& Taylor network, the possible bankruptcy of which was actively discussed back in April, has appealed to the Eastern Virginia Court with a corresponding statement.  

The reasons for the dire financial condition of the company arose long before the pandemic. However, the rapid spread of COVID-19 has prevented the trading company from succeeding in reviving the country's oldest brand. 
The department store, founded in 1826, has shared the fate of many US companies forced to turn to the chapter 11 of the Bankruptcy Code. The forced shutdown of the shopping centers in March 2020 put them in danger of total ruin. According to American analysts, more than 40 well-known retailers have already filed for bankruptcy this year. That is more than the number of retail bankruptcies for the entire 2019. 

Last year, Le Tote Inc., a French clothing rental company, acquired Lord&Taylor for $ 71 million.

The company had plans to revive the former greatness of the brand, but the accumulated debts did not allow it to do so. The experts point out to the $ 138 million of the outstanding obligations. As a result, the company was forced to sell its legendary store in New York back in 2019, so as not to leave 650 employees without work. The company now operates 38 retail outlets in the United States, some of which are about to be closed shortly.
Lord&Taylor was not the only brand to file for bankruptcy last Sunday. Tailored Brands Company, which manages the famous brands Men's Wearhouse and Jos A. Banks, has filed a similar statement to the court of the Southern District of Texas. The transition of the customers to e-commerce, which the retailers have been struggling with, does not allow survive in the coronacrisis. The transition of many employees to the remote work forced the potential customers to reconsider their preferences for buying office clothes. 

The Tailored Brands Company plans to launch a debt restructuring process in order to cut its debts by $ 630 million.

It is known that the lenders promised to support the company for $ 0.5 billion. Now the chain of stores includes 1.4 thousand retail outlets in North America, which employs about 18 thousand employees. About 1,300 employees were laid off from the company between February and July 2020.