Lord & Taylor is reportedly exploring filing for bankruptcy protection after it was forced to temporarily shut all of its 38 U.S. department stores in the wake of the coronavirus outbreak, according to a recent report on Reuters.
It is one of several options that the retailer and its advisers are said to be exploring, which also include trying to negotiate relief from creditors and finding additional financing, the report said.
Fashion rental service start-up Le Tote acquired Lord & Taylor last year from Hudson’s Bay Company. Hudson’s Bay kept ownership of some of Lord & Taylor’s real estate and assumed responsibility for its rent payments.
Lord & Taylor is not alone among U.S. department store operators forced to weigh bankruptcy in response to prolonged store closures following the pandemic. Neiman Marcus Group is said to be planning to file for bankruptcy soon, while J.C. Penney is also considering a similar move, Reuters previously reported.