America's Oldest Department Store Is Going Out of Business
In nearly two centuries of operation, Lord & Taylor has survived a lot. However, the oldest department store chain in the U.S. -- tracing its lineage to a dry goods store that opened in New York City in 1826 -- was already on death's doorstep a year ago. By that time, Lord & Taylor was experiencing steady sales declines, and earnings before interest, taxes, depreciation, and amortization (EBITDA) had turned negative. As a result, former parent Hudson's Bay effectively paid fashion rental start-up Le Tote to take Lord & Taylor off its hands.
The Le Tote-Lord & Taylor tie-up always seemed like a long shot at best. The COVID-19 pandemic made the odds insurmountable. As a result, after filing for bankruptcy protection a month ago, Lord & Taylor announced last week that it has started liquidation sales at all of its stores.
When Lord & Taylor and Le Tote filed for bankruptcy protection in early August, they announced plans to close half of Lord & Taylor's 38 stores. About two weeks ago, the department store chain added another five stores to its downsizing plans. This would have left it with just 14 stores, mostly in the New York metro area. Of the 14 stores that would have remained, seven occupy off-mall locations.
Source Fool.com
