As Lord & Taylor gets ready to open its stores amid the coronavirus pandemic, the company reportedly has plans to liquidate its inventory as it moves one step closer to filing for bankruptcy.

The retailer will liquidate inventory at 38 stores as it prepares to file for bankruptcy, which sources told Reuters it does not expect to emerge from.

Lord & Taylor closed all its stores in March as the coronavirus caused the shutdown of non-essential businesses. The company, which roots date back to 1826, is one of several retailers that are not expected to survive the impact of the coronavirus.

Lord & Taylor is anticipated to hold liquidation sales as a way to generate cash, which according to the sources for the news outlet, is causing the company to hold off on its bankruptcy filing so it can go ahead with these going out of business sales.

The company is working with liquidators for the liquidation process and will permanently close all its stores once it has sold all its inventory, the sources told Reuters.

Lord & Taylor has been in turmoil, laying off employees and seeing its executive team resign, including its president Ruth Hartman, sources told FN. The company is reportedly looking to find relief from its creditors and considering additional financing sources.

Lord & Taylor was acquired by Le Tote from Hudson’s Bay Company in a $71 million (C$100 million) deal last year.

Lord & Taylor
Lord & Taylor was sold by its parent company, Hudson's Bay. General view of atmosphere at the 2015 Lord & Taylor holiday windows unveiling at Lord & Taylor on November 12, 2015 in New York City. Getty Images/Noam Galai
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