Oh How the Mighty Have Fallen (aka Luxury Retail)

"Luxury department store chain Lord & Taylor is going out of business. The company, which was acquired in 2019 by fashion rental subscription service Le Tote, said Thursday that it would close all of its 38 stores. ~Aug 27, 2020"
"Neiman Marcus is permanently closing stores around the country, coming on the heels of its bankruptcy filing in May. The luxury department store company is shuttering five locations, as well as 17 of its off-price Neiman Marcus Last Call stores, according to court documents. ~Aug 24, 2020"

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Sad. The chains' misfortune is ours as well.

"In the time since Barneys was sold off, Neiman Marcus, Stage Stores, J.C. Penney and now Lord & Taylor have all gone bankrupt, while other department stores have remained afloat but in a reduced capacity. Neiman Marcus has permanently closed four stores, including its Hudson Yards store opened in 2019, while J.C. Penney closed has 154 stores and Stage Stores has closed all of its stores. Macy’s closed nearly 30 stores in March, and has dropped from 680 stores last year to 555 now. Saks Fifth Avenue has had to seek outside financing as the virus has impacted sales. Nordstrom’s revenue has fallen by 40% since the pandemic began, and it announced in May that it’s closing 16 stores."

How come when some companies go bankrupt, they actually close (like Lord & Taylor), but others keep going (like Hertz)?

I loved Lord & Taylor! I will miss that store and others like it. I remember and miss others from previous decades that merged, closed, and/or cluttered the retail landscape with too many stores in general and too many of each store type. Soon, they were too easy to find! They were not elusive, and it was not a big deal to go there since you could go practically anywhere and find the name. *sigh*

[yes, i am an unabashed retail snob some of the time]

Nature does not hurry, yet everything is accomplished. - Lao-Tzu

Wait. A clothes rental outfit bought Lord and Taylor? What's the world coming to, anyway?

@ColoradoShops wrote:

How come when some companies go bankrupt, they actually close (like Lord & Taylor), but others keep going (like Hertz)?

It depends on the type of bankruptcy and if they can find a buyer for restructuring their debt. It really is just a scam as some companies go bankrupt and restructure multiple times. As a business you can do it as a individual you can't.

Shopping Western NY, Northeast and Central PA, and parts of Ohio and West Virginia. Have car will travel anywhere if the monies right.

I wouldn't exactly put JC Penny in the same category as Niemans or Nordstroms. A former CEO tried to do that and forgot the bargain basement customer base. He was not successful.

"I told myself to quit you; but I don't listen to drunks." -Chris Stapleton

@ColoradoShops wrote:

How come when some companies go bankrupt, they actually close (like Lord & Taylor), but others keep going (like Hertz)?

There is a chapter 7 bk, which is more likely to result in closing. There is a chapter 11 bk, which is often a reorganization of debt.

Lesson to be learned: WATCH YOUR DEBT

The famed investor, Peter Lynch, once hilariously said that he tried very hard to find a company that would go bankrupt with no debt. For some reason, he said, he just couldn't find one. LOL! *obvious joke, but a good reminder*

@HonnyBrown wrote:

I wouldn't exactly put JC Penny in the same category as Niemans or Nordstroms. A former CEO tried to do that and forgot the bargain basement customer base. He was not successful.

I didn't. It was a quote from an article. I created the title of this thread based on the high-end department stores mentioned in the article.

Edited 1 time(s). Last edit at 09/21/2020 09:52PM by LuvsTraveling.

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Oh How the Mighty Have Fallen (aka Luxury Retail)

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