Lord & Taylor is 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, Reuters reported. It is one of several options that the retailer and its advisers are exploring, which also include trying to negotiate relief from creditors and finding additional financing. Fashion rental service start-up Le Tote acquired Lord & Taylor last year from Saks Fifth Avenue owner Hudson’s Bay Company for C$100 million. Hudson’s Bay kept ownership of some of Lord & Taylor’s real estate and assumed responsibility for its rent payments, amounting to tens of millions of dollars a year. Le Tote also owes Hudson’s Bay C$33.2 million stemming from a promissory note from the deal. Le Tote acquired Lord & Taylor to expand beyond e-commerce into brick-and-mortar stores. It acquired Lord & Taylor’s operations, including its merchandise inventory, online business and most of its employees. As part of the deal last year, Hudson’s Bay also secured an ownership stake in Le Tote and two seats on the company’s board. Hudson’s Bay representatives have since stepped down from the board.
