Major Retail Bankruptcies - Lord & Taylor and Parent Co. of Men’s Wearhouse and Jos. A. Banks

Major Retail Bankruptcies - Lord & Taylor and Parent Co. of Men’s Wearhouse and Jos. A. Banks

It is more bad news for retail in America. The list is every growing as two major bankruptcy filings were made Sunday.

This list of 2020 filings includes J.Crew, Neiman Marcus, Pier One, JC Penney, Brooks Brothers, Ann Taylor and on and on.

Lord & Taylor, which has a legacy dating back nearly 200 years, filed for bankruptcy along with its owner, the venture-backed fashion-rental subscription service Le Tote Inc.

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As part of the filings, the company will permanently close all of its 38 physical stores — it will be holding a liquidation

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The Wall Street Journal reports that “Sunday’s chapter 11 filings in the U.S. Bankruptcy Court in Richmond, Va. are the latest indications of the Covid-19 pandemic’s ruinous effect on storied American retailers, coming less than a year after Le Tote agreed to buy Lord & Taylor from Hudson’s Bay Co., the parent of Saks Fifth Avenue.”

In court papers, the company said it would conduct going-out-of-business sales at the Lord & Taylor stores, anticipating a liquidation of its brick-and-mortar footprint.

Men's Wearhouse and Jos. A. Banks

In addition, Tailored Brands Inc., the parent company of Men’s Wearhouse and Jos. A. Bank, has filed for bankruptcy after the coronavirus pandemic slashed demand for dress clothes.

The publicly-traded company filed for chapter 11 protection Sunday in the U.S. Bankruptcy Court in Houston. Sales of apparel have plunged since March when many stores temporarily shut and millions of Americans started working from home. 

“Tailored Brands said that it reached a restructuring support pact with more than three-fourths of its senior lenders that will slash at least $630 million in debt off its books. Existing lenders will also provide $500 million in bankruptcy financing, allowing the retailer to keep its stores open during the chapter 11 case,” reported the WSJ.