Posted on 05/06/2020 1:24:31 PM PDT by Hojczyk
Venerable U.S. retailer Lord & Taylor plans to liquidate inventory in its 38 department stores once restrictions to curb the spread of coronavirus are lifted as it braces for a bankruptcy process from which it does not expect to emerge, people familiar with the matter said on Tuesday.
Lord & Taylor’s preparations to liquidate its inventory as soon as its stores reopen offer a window into the grim future of a high-profile retailer - a storied department store chain founded in 1826 and billed as the oldest in the United States - that does not expect to survive the pandemic’s economic fallout.
On Monday, retailer J.Crew Group Inc filed for bankruptcy protection with a plan to avoid liquidation and reorganize its debts thanks to an agreement with its creditors.
Retailers that pursue a liquidation hold “going out of business” sales in order to generate cash, and their stores often become magnets for consumers looking for bargains. Lord & Taylor is holding off on a bankruptcy filing and subsequent liquidation until it can reopen its stores to attract those shoppers, according to the sources, who spoke on condition of anonymity.
(Excerpt) Read more at reuters.com ...
Bankruptcy Attorneys will be in big demand real soon, you aint seen nothin yet!!
These brick and mortar high end retail stores were really on their way out... This just sped it up for sure.
Yes, this will change America forever.
Lord and Taylor not only had some “mall” stores, here in the northeast it has/had standalone stores in many well established, healthy small downtowns. Minus the government mandated shut downs, I think some stores like Lord and Taylor’s were not in line for failure.
Lord and Taylor not only had some “mall” stores, here in the northeast it has/had standalone stores in many well established, healthy small down towns. Minus the government mandated shut downs, I think some stores like Lord and Taylor’s were not in line for failure. Not every clothing shopper is just looking either online or for bargains at Target and other “bargain” clothing retailers. Quality is still appreciated with many clothes and viewing images does not take the place of trying on, feeling the fabric, seeing the quality of work.
My online clothing shopping is pretty limited, mostly shoes because I have small wide feet and stores don’t stock my 7 1/2 EEE size too often (elephant paws I call em).
It's not just high end. An insatiable demand for cheap imported goods, cheap illegal labor, demanding shareholders, regressive anti-profit tax code, and cutthroat competition have forced businesses large and small to operate on shoestring margins that can't survive even a 1 or 2 month shutdown. Too many businesses have been surviving month to month like a high school dropout living paycheck to paycheck. Lawyers and vulture capitalists are salivating.
I think all high end department stores have been suffering since the 1970s with the general trend towards casual dressing.
So they’re talking Chapter 7, not 11?
Don’t worry - Joe Biden is on this. He’s forming a sexual harassment council right now!
True, but it begs the question, where will the ferals go now if not the malls?
And the democrats and their covid supporters rejoice
That's unfortunate. I don't like to shop online. You can't try on clothes or handle merchandise through the computer screen, and porch pirates may snatch up your purchases before they get to you..
Could they just dump Taylor and keep Lord?
Mendel the Tailor
There was a tailor named Mendel and he was worried about his business. Mendel was down to his last $50 and was torn between buying a sign and getting food for his family. Mendel decided to pray. “Dear God,” he said, “I don’t know what to do. If I buy a sign it may bring in business, but I need to buy groceries for my family...and if the sign doesn’t bring in sales, we will starve.” God replied, “Mendel, buy the sign. Don’t worry, your family won’t starve.” So, Mendel bought the sign and business took off. The tailor fed his family and all was well. However, as time passed it became evident that Mendel couldn’t keep up with orders all by himself. He contemplated hiring on a helper, but wondered if he could afford it. So, he asked God if getting help would be a prudent move. “Go ahead,” God tells Mendel, “hire some help, you’ll do okay.”And so Mendel did. And business took off beyond his wildest dreams. After a time, the tailor decided to move to a larger site that would accommodate the growing demands of his business. As he surveyed certain locations, he found a perfect storefront, but the rental price was really steep. “God,” Mendel again prayed, “I found the perfect place to relocate my business. But the cost of the lease worries me. I don’t want to get in over my head.” “Go ahead and a get a lease on the store, Mendel,” said God. “Trust me, you’ll be okay—I haven’t steered you wrong yet, have I?” So Mendel signed a lease on the 5th Avenue store and profits from his business went through the roof. Out of heartfelt gratitude, Mendel proposed to the Almighty that he dedicate the store to Him. “How do you like the name “Yaweh and Mendel,” the tailor asked. “Nah,” God said. “Let’s go with ‘Lord and Taylor.’”
You’re right, and Congress knows it because as part of the last Covid-19 relief bill they raised the debt limit for the new Small Business Subchapter 5 (Chapter 11) bankruptcy from 2.7M to 7.5M.
They'll more likely file a liquidating 11.
I’m still trying to figure out why department stores had to close, but WalMart didn’t, and can sell anything they have.
Alas, poor Hudsons, I knew thee well.
I still miss the “Maurice” salads in the Hudson’s cafe in SE Michigan.
The Sally’s beautysupply shop up the street from us is just gone. Its been there for years. Our favorite BBQ restaurant which has been around for 20 years is gone. The impact on small business is going to be horrendous.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.