After filing for Chapter 11 bankruptcy protection and unable to find a buyer, Le Tote, Inc. and Lord & Taylor will now conduct going out of business sales at all 38 stores and on the retail brand’s website.
Le Tote, Inc. and Lord & Taylor, which recently filed for Chapter 11, said they continue to review offers for a sale of the company and its brands. Meanwhile, the company added five more Lord & Taylor stores to the list of stores that are now participating in the store closing sale process led by a joint venture of Hilco Merchant Resources and Gordon Brothers.
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.