On August 2, Le Tote, Inc. and certain of its subsidiaries including Lord & Taylor, filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Eastern District of Virginia. The company will simultaneously solicit bids for a going concern sale of both its Le Tote and Lord + Taylor businesses, and conduct targeted store closing sales.
The company said it filed to facilitate and continue a marketing process for both of its business units that began this summer and to efficiently monetize any assets not sold. Both Le Tote and Lord + Taylor will continue to operate during the chapter 11 process, the company said.
To help fund and protect its operations during the chapter 11 process, the company has obtained consent to use cash collateral from its prepetition secured lenders. The company has also filed a number of customary motions seeking court authorization to support its operations during chapter 11, including the continued payment of employee wages and benefits and the authority to conduct store closing sales led by a joint venture of Hilco Merchant Resources and Gordon Brothers.
The store closing process has begun at 19 locations.
Hudson’s Bay Co. and Le Tote, a fashion rental subscription service, entered into an agreement for Le Tote to acquire the Lord + Taylor department store chain in 2019.