Two More Retail Bankruptcies: Lord & Taylor, Men’s Wearhouse Parent Succumb To Chapter 11

Two more retailers have fallen under the weight of the coronavirus as Lord & Taylor and Tailored Brands have both filed for Chapter 11 bankruptcy protection.

Lord & Taylor, which is owned by French parent company Le Tote, is reportedly looking for a new owner in bankruptcy. The retailer filed for Chapter 11 with $100 to $500 million in assets and liabilities, Reuters said.

Retail locations for both Lord & Taylor and Tailored Brands were temporarily closed during the coronavirus pandemic in March. The two retailers join JC Penney, Neiman Marcus, Brooks Brother, RTW Retailwinds, J. Crew, and Ascena Retail Group in filing for Chapter 11 during the coronavirus pandemic.

Lord & Taylor's roots date back to 1826, making it one of the oldest department stores chains in the U.S. It was sold to Le Tote from Saks Fifth Avenue owner Hudson’s Bay Company for C$100 million ($74.62 million) in 2019.

Tailored Brands, the owner of Men’s Wearhouse, Jos A. Bank, Moores Clothing for Men, and K&G Fashion Superstore, also filed for bankruptcy, entering into a restructuring support agreement with more than 75% of its senior lenders, which will wipe away at least $630 million in debt, giving the retailer more financial flexibility moving forward.

Tailored Brands said it expects to quickly emerge from bankruptcy, securing $500 million in debtor-in-possession financing from it revolving credit facility lenders. The company also has about $90 million in cash on hand that its lenders have agreed to unrestrict under certain terms and conditions to help fund the restructuring process and keep operations going.

“As evidenced by the positive results we saw in January and February, we have made significant progress in refining our assortments, strengthening our omni-channel offering and evolving our marketing channel and creative mix,” Tailored Brands President and CEO Dinesh Lathi, said in a statement.

“However, the unprecedented impact of COVID-19 requires us to further adapt and evolve. Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger Company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment.”