The year 2020 began tragically with the passing of NBA legend Kobe Bryant and rapidly deteriorated with the outbreak of the COVID-19 pandemic and widespread civil unrest triggered by George Floyd’s killing. Amid these upheavals, the economy suffered significantly, leading consumers to favor online shopping giants like Amazon, which delivered goods through services like the United States Post Office and UPS. This shift heavily impacted traditional retailers, some of which have been staples of American commerce for centuries.
Among the affected is Lord & Taylor, the oldest department store chain in the U.S., which announced the closure of all its locations following nearly 200 years of operation. The economic downturn has overwhelmed this iconic business, leading to its sale to French company Le Tote Inc. last year. The decision follows a bankruptcy filing, with initial plans to keep 14 stores open now giving way to a total liquidation of all 38 stores.
Founded in 1824 in Manhattan as a dry goods store, Lord & Taylor not only pioneered the department store concept in the U.S. but also continued to be an innovator in retail until its recent sale to Le Tote Inc. Both companies have since filed for bankruptcy in the Eastern Court of Virginia in August 2020.
Ed Kremer, the Chief Restructuring Officer at Le Tote, stated, “While we explore various opportunities, it’s prudent to also initiate the liquidation of remaining stores to maximize the inventory’s value for the estate while we assess options for the company’s brands.”
Prior to the pandemic, Lord & Taylor had sold its historic Fifth Avenue store to a French entity after owning it for over a century. The building was initially acquired by the struggling coworking firm WeWork and has now been taken over by Amazon for its new Manhattan office.
Lord & Taylor is currently conducting going-out-of-business sales, with all items, including fixtures, equipment, and furniture, being liquidated.
The pandemic has forced many established businesses to close. Companies like Brooks Brothers, J. Crew, J.C. Penney, Neiman Marcus, Stage Stores, Ann Taylor, and Lane Bryant have all been significantly impacted. Brooks Brothers, a 200-year-old institution that outfitted most U.S. presidents, faces similar struggles, while Barneys New York, a former competitor, filed for bankruptcy the previous year.
Other notable retail casualties include The Paper Store, Inc., Sur La Table, Inc., Lucky Brand, LLC, and Ascena Retail Group, Inc., which owns Men’s Warehouse and Jos A. Bank.
As the economic collapse continues to damage the fabric of American commerce, the future recovery of the economy and the repurposing of these retail spaces remain uncertain.