Retailers Lord & Taylor and Tailored Brands on Sunday declared bankruptcy, adding to a growing list of companies seriously affected by the coronavirus pandemic.
Lord & Taylor is one of the oldest Department stores in the United States, existing since 1826. Tailored Brands is the parent company of men’s clothing stores Men’s Wearhouse and Jos. A. Bank.
Chapter 11 of the bankruptcy code allows companies to reorganize their debts to save the business. Most of the companies that filed for Chapter 11 bankruptcy this year were experiencing financial problems even before the pandemic began. In many cases, the quarantine measures introduced in early March only revealed pre-existing problems.
Lord & Taylor filed for bankruptcy in the Eastern District of Virginia. The company announced its decision on its official website, saying it was looking for a new owner. Last year, Lord & Taylor was sold to the French clothing rental company Le Tote.
Tailored Brands went to court in the southern district of Texas and said its restructuring plan would reduce consolidated debt by at least $ 630 million.
The coronavirus has hit networks that specialize in business clothing particularly hard, as many people have started working from home. Recently, the Brooks Brothers and Ann Taylor brands also declared bankruptcy.
Also this year, brands such as J.Crew, JCPenney, and Neiman Marcus.