America’s Oldest Department Store Is Closing All Its Stores After 200 Years
The year 2020 began with the tragic passing of NBA legend Kobe Bryant and quickly became one of the most challenging years in recent history, with the emergence of the COVID-19 pandemic and widespread social and economic disruption.
Among the many industries impacted by the pandemic, the retail sector faced significant setbacks. With lockdowns and a shift to online shopping, many brick-and-mortar retailers saw a steep decline in foot traffic and revenue. One such retailer is Lord & Taylor, America’s oldest department store, which is now set to close all of its remaining stores after nearly two centuries in business.
Founded in Manhattan in 1824 as a dry goods store, Lord & Taylor became the first department store in the United States and a fixture of American retail innovation. After years of evolution and expansion, the company was sold in 2019 to the French clothing rental firm Le Tote Inc. However, both companies filed for bankruptcy in August 2020 in the Eastern District of Virginia.
Initially, Lord & Taylor planned to keep 14 of its 38 stores open following its Chapter 11 filing. However, due to continued financial pressure, the company has announced a full liquidation of all locations.
“While we are still exploring various opportunities, we believe it is prudent to simultaneously put the remainder of the stores into liquidation to maximize the value of inventory for the estate,” said Ed Kremer, Le Tote’s chief restructuring officer, in a public statement.
In 2019, prior to the pandemic, Lord & Taylor sold its historic Fifth Avenue store in Manhattan. The building, once acquired by WeWork, was later purchased by Amazon and is now being developed as a new office space.
Lord & Taylor’s ongoing going-out-of-business sales include store fixtures, furniture, and equipment, along with merchandise.
The company joins a growing list of legacy retailers affected by the economic impact of the pandemic. Other well-known brands that have filed for bankruptcy or restructured their operations include Brooks Brothers, J.Crew, J.C. Penney, Neiman Marcus, Ann Taylor, Lane Bryant, Barneys New York, Sur La Table, and Men’s Wearhouse (through parent company Ascena Retail Group).
While these changes mark the end of an era for many beloved retail brands, they also signal a period of transformation within the retail industry. As the economy continues to adapt and evolve, new opportunities may emerge to fill the spaces left behind.
