Lord & Taylor and Tailored Brands have joined the list of retailers aiming to restructure their operations in the wake of COVID-19. Lord &Taylor has been struggling due to a shift in consumer habits from offline to online shopping. In its bankruptcy filing, the company listed assets and liabilities between $100 million and $500 million. Tailored Brands, which operates Men’s Warehouse stores, also filed for Chapter 11 bankruptcy and announced plans to shut as many 500 of its stores.
A company that files for Chapter 11 bankruptcy under US law usually continues operating by reorganizing its business and payments to creditors. This year, two major US department stores, JC Penney and Neiman Marcus also filed for Chapter 11 bankruptcy in May. Major clothing brands have also sought reorganization through bankruptcy. The more-upscale Brooks Brothers sought Chapter 11 protection last month, as did the parent company of women’s fashion brands Ann Taylor and Lane Bryant.
Other sectors have also been hit by the changing habits of consumers, with lockdown orders stifling travel and forcing places like restaurants and gyms to temporarily close their doors to try to stop the spread of the virus. Rental car giant Hertz, gym chain 24 Hour Fitness and Gold’s Gym and vitamin and supplement retailer GNC also filed for bankruptcy.