As we march into the eighth month of the year, bankruptcies and debts continue to be the talking point. And here’s one more!
The American retailer Lord & Taylor, known majorly for its upscale fashions, filed for Chapter 11 protection from creditors on 2 August.
The decision didn’t come as a surprise after all its efforts for a turnaround, amidst pandemic crisis, failed miserably. The retailer will be soon submitting a reorganisation plan with the court.
The almost 2-century-old retailer, reportedly, stated that it has US $ 137.9 million debt obligations.
Here it is important to note that the fashion start-up Le Tote Inc. had acquired the rights to retailer’s stores, brands and online platform from Hudson’s Bay Co. in 2019 for US $ 71 million.
Le Tote, known for renting fashion apparels, now has plans to bring down the number of Lord & Taylor stores and focus more on younger women by investing on luxury try-on studios and rental drop-off points.
Notably, Hudson’s Bay, in a deal with Le Tote, had agreed to cover Lord & Taylor’s rent for 3 years thereby saving Le Tote US $ 58 million every year.
Lord & Taylor, at the time of filing, had 38 stores.