Le Tote Inc. and certain of its subsidiaries, including Lord & Taylor, filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Eastern District of Virginia. The company will simultaneously solicit bids for a going concern sale of both its Le Tote and Lord + Taylor businesses, and conduct targeted store closing sales to maximize the value of its business. Both Le Tote and Lord & Taylor will continue to operate during the Chapter 11 process.
To help fund and protect its operations during the chapter 11 process, the company has obtained consent to use cash collateral from its pre-petition secured lenders. The company has also filed a number of customary motions seeking court authorization to support its operations during chapter 11, including the continued payment of employee wages and benefits and the authority to conduct store closing sales led by a joint venture of Hilco Merchant Resources and Gordon Brothers. The store closing process has begun at 19 locations.
Le Tote purchased Lord & Taylor from Hudson’s Bay Company (HBC) late last year. The company cited the coronavirus pandemic as the main factor in its financial woes.