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.
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.
Hudson’s Bay Company has completed the sale of Lord + Taylor to Le Tote, a leading fashion rental subscription service, for $75 million in cash and a secured promissory note for $25 million payable in cash after two years, subject to customary adjustments.
Hudson’s Bay Co. and Le Tote, a fashion rental subscription service, have entered into an agreement for Le Tote to acquire the Lord + Taylor department store chain.