Lord and Taylor, Oldest U.S. Department Store, Files Bankruptcy

A shopper wears a protective mask while passing in front of a Lord & Taylor LLC store in Novi, Michigan, U.S., on Friday, June 5, 2020. Governor Gretchen Whitmer announced Friday that barbershops, hair and nail salons will be allowed to open statewide in Michigan on June 15, Detroit News reported. Photographer: Emily Elconin/Bloomberg , Bloomberg

(Bloomberg) -- Lord & Taylor, known for its upscale fashions and extravagant holiday window displays, sought bankruptcy protection from creditors after a turnaround effort faltered amid the coronavirus pandemic.The oldest U.S. department store filed for Chapter 11 protection in Richmond, Virginia, on Sunday. The company, founded in Manhattan by two English immigrants in 1826, listed assets and liabilities of up to $500 million each in its petition. Fashion start-up Le Tote Inc. bought the rights to the company’s stores, brand and e-commerce site from Fifth Avenue owner Hudson’s Bay Co. for $71 million last year.The chain joins a burgeoning list of department-store casualties tied to the virus, which turned malls into ghost towns. Former fashion stalwarts like J. Crew Group Inc. and Neiman Marcus Inc. already filed for bankruptcy protection this year.San Francisco-based Le Tote – which offers fashion-apparel rentals – also filed for Chapter 11. Executives at the company had planned to cut the number of Lord & Taylor stores and target younger women with luxury try-on studios, beauty subscriptions and rental drop-off points.Under the deal with Hudson’s Bay, the seller agreed to cover Lord & Taylor’s rent for three years, saving Le Tote $58 million annually.

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