Lord & Taylor and the owner of Men’s Wearhouse have fallen victim to the coronavirus, with the retailers filing for bankruptcy this weekend.
Lord & Taylor, a department store chain whose roots go back to nearly two centuries, was acquired last year by the clothing rental start-up Le Tote for $100 million. But both companies filed for Chapter 11 bankruptcy protection Sunday, the New York Times reported. The department chain operated 38 stores, which have been temporarily closed since March, according to the court filing.
Tailored Brands, which owns Men’s Wearhouse and JoS. A. Bank, also filed for bankruptcy on Sunday, with plans to eliminate its debt by at least $630 million. The filing comes shortly after the retailer announced plans to eliminate 20 percent of its corporate jobs and close up to 500 of its about 1,400 stores.
The apparel industry had been one of the most affected by the pandemic. Millions of Americans are unemployed or working from home, resulting in a massive drop in clothing sales. Tailored Brands reported that net sales had fallen by 60.4 percent in the three months that ended May 2, compared to a year ago.
Neiman Marcus, J. Crew, New York & Company, Brooks Brothers and J.C. Penney all filed for bankruptcy in recent weeks. Ascena Retail, which owns Ann Taylor and Lane Bryant, also sought Chapter 11 protection in late July. [NYT 1, 2] — Akiko Matsuda