An additional five Lord & Taylor stores have been earmarked for closure as the department store chain and its owner, fashion rental subscription service Le Tote, continue to review offers for a sale of the company and its brands.
The 19 previously announced stores already conducting closing sales are now joined by stores in Schaumburg, Illinois; Salem, New Hampshire; Rockaway, New Jersey; Livingston, New Jersey; and Huntington Station, New York.
Le Tote, whose business model lets women rent clothing and accessories for a flat monthly fee with the option to purchase items at a discount, bought Lord & Taylor’s brand and e-commerce site from Hudson’s Bay for US$100m in a deal that closed in November 2019.
As part of the agreement to buy the luxury retailer, Hudson’s Bay agreed to maintain the rent payments owed by Lord & Taylor at the locations operated by Le Tote for at least three years. From 2021, Hudson’s Bay and Le Tote also agreed options to reassess the Lord & Taylor store network – which could include the Canadian company ‘recapturing’ and redeveloping some locations.
Both companies filed for Chapter 11 bankruptcy protection at the start of this month, joining others that have succumbed to bankruptcy during the pandemic, including Tailored Brands, Ascena Retail Group, J.Crew and JCPenney.
A joint venture of Hilco Merchant Resources and Gordon Brothers is managing the company’s store closing sales.
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