The Oldest Department Store in the US, Lord & Taylor, Also Files for Bankruptcy Protection

[Asia Economy Reporter Naju-seok] Lord & Taylor, the oldest department store chain in the United States, filed for bankruptcy protection on the 2nd (local time). Despite previous attempts at recovery, it could not withstand the impact of the COVID-19 pandemic.

[Image source=Reuters Yonhap News]

According to Bloomberg News, Lord & Taylor filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code at the Richmond Bankruptcy Court in Virginia on the same day. Chapter 11 allows companies facing bankruptcy to attempt reorganization under court supervision instead of liquidation. Lord & Taylor plans to submit a restructuring plan to the court.

Earlier, Lord & Taylor's parent company, Le Tote, also filed for bankruptcy protection. Lord & Taylor was sold to Le Tote for $71 million (84.9 billion KRW) last year at the Saks Fifth Avenue department store. Lord & Taylor was founded in 1826 by two British immigrants.

Lord & Taylor currently operates 38 stores with 651 employees. Initially, Le Tote intended to change the business direction by reducing Lord & Taylor's stores and increasing beauty-related subscriptions. However, the shock of COVID-19 led to financial difficulties.

Lord & Taylor had already closed its stores in March this year due to lockdown policies.

Besides Lord & Taylor, clothing brands J.Crew and Brooks Brothers, as well as department store chain Neiman Marcus, have also filed for bankruptcy protection following the COVID-19 crisis.

This content was produced with the assistance of AI translation services.