Starting with the premature passing of NBA icon Kobe Bryant, 2020 swiftly spiraled into chaos due to the coronavirus pandemic and the civil unrest that erupted following the murder of George Floyd.
As the economy fought to endure the downturn caused by the pandemic, retailers (including some that have been around as long as America itself) faced challenges as consumers increasingly turned to Amazon and other online retailers for goods delivered via the United States Postal Service or UPS.
Now, Lord & Taylor – the oldest department store chain in America – is poised to shut down all of its locations after nearly two centuries of operation.
The economic pressures have devastated this American institution, which was sold to a French firm last year, leading to the closure of all 38 stores in a desperate liquidation effort.
This marks a shift from its previous decision to file for Chapter 11 bankruptcy, during which it opted to keep fourteen locations operational.
Lord & Taylor first opened its doors in Manhattan in 1824 as a dry goods store, becoming the first department store in the United States. It continued to innovate for many years until its acquisition by the French clothing company, Le Tote Inc., last year.
Both Lord & Taylor and Le Tote Inc. filed for bankruptcy in the Eastern District of Virginia in August 2020.
“While we are still exploring various opportunities, we believe it is wise to simultaneously initiate the liquidation of the remaining stores to maximize the value of the inventory for the estate while we pursue options for the Company’s brands,” stated Ed Kremer, Le Tote’s chief restructuring officer.
Prior to the onset of the coronavirus pandemic last year, Lord & Taylor was seeking to revamp its operations. They sold their Fifth Avenue location to the French after more than a century of ownership. The struggling coworking company, WeWork, acquired the building, which has since been bought by Amazon for a new office space in Manhattan.
Currently, Lord & Taylor is conducting its going-out-of-business sales.
The economic repercussions of the coronavirus pandemic have compelled numerous businesses to close their doors. Brooks Brothers, along with J. Crew, J.C. Penney, Neiman Marcus, Stage Stores, Ann Taylor, and Lane Bryant, will no longer function as they previously did.
Brooks Brothers, a company with a history spanning two centuries, has provided attire for many presidents of the United States. Barneys New York, its longstanding competitor, had already filed for bankruptcy last year.
Other significant retailers that have sought bankruptcy protection include The Paper Store, Inc., Sur La Table, Inc., Lucky Brand, LLC, and Ascena Retail Group, Inc., which owns Men’s Warehouse and Jos A. Bank.
In light of the economic collapse that has devastated the American economy—diminishing historic businesses that have been operational nearly as long as the nation itself—we must observe how the economy will rebound and who will fill the resulting vacancies.
