The number of retailers filing for bankruptcy has grown as Lord & Taylor and Tailored Brands, the parent company of Men's Wearhouse and Jos. A. Banks, filed for Chapter 11.
Lord & Taylor, which is one of the oldest department stores in the United States, said the decision was made due to the "unprecedented strain" the coronavirus has had on their business. The retailer said they are trying to find a buyer for their stores.
Lord & Taylor has 38 department stores, mostly located in the Northeast. The stores have been closed down since March because of the pandemic. The company plans to hold liquidation sales when they are allowed to reopen.
Tailored Brands said they hope to remain open and emerge from bankruptcy stronger.
"Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment," said CEO Dinesh Lathi.
The company said a few weeks ago that they plan to close about one-third of their locations across the country.
The coronavirus pandemic has taken a massive toll on the retail industry, with stores across the country forced to close down. Roughly 40 companies have filed for bankruptcy in 2020, surpassing the total number from all of last year.
The list of companies that have filed for bankruptcy this year includes Neiman Marcus, J. Crew, J.C. Penney, Brooks Brothers, Pier 1 Imports, GNC, and Ascena Retail Group, which owns Lane Bryant and Ann Taylor.
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