Lord & Taylor Weighs Bankruptcy Filing As Stores Remain Closed During Coronavirus Pandemic

The list of retailers that are considering filing for bankruptcy during the coronavirus pandemic is growing as Lord & Taylor is reportedly also considering filing for bankruptcy protection.

Lord & Taylor closed all of its 38 U.S. department stores in March when the COVID-19 outbreak caused a number of states to enact stay-at-home orders.

At the time, Lord & Taylor said in a statement, "We are closely monitoring and following the guidance of the CDC and WHO as well as local government and public health agencies. We will continue to assess closure timelines as the situation develops and plan to reopen our doors as soon as possible."

The company is now working with advisors to determine its financial options as it looks for relief from its creditors and additional financing, sources told Reuters. While no final decision has been made about filing for bankruptcy, Lord & Taylor’s owner Le Tote told the news outlet that the company is working through various options.

Lord & Taylor’s possible bankruptcy filing follows news that Neiman Marcus and JC Penney are also weighing potential bankruptcy filings. Neiman Marcus could reportedly file for bankruptcy protection as soon as this week.

Le Tote acquired Lord & Taylor from Hudson’s Bay Company in a C$100 million deal last year. Hudson’s Bay kept ownership of some of the company’s real estate properties, with responsibility for tens of millions of dollars a year in rent payments, the news outlet said. Le Tote reportedly owes Hudson’s Bay C$33.2 million from a promissory note as part of the acquisition.