Aug 03, 2020
Lord & Taylor files for bankruptcy as coronavirus keeps hitting retailers hard
This news has been received from: CBS News
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New York — Lord & Taylor, one of America's oldest department stores, has filed for bankruptcy, joining a growing list of stores slammed by the coronavirus pandemic. Tailored Brands, the parent company of Men's Wearhouse and Jos. A. Banks, filed for bankruptcy as well.
Many of the companies that have filed for Chapter 11 in recent weeks were already struggling, but the forced closure of non-essential stores in March pushed them to the brink.
Lord & Taylor, which was sold to the French rental clothing company Le Tote Inc. last year, filed for bankruptcy protection in the Eastern Court of Virginia Sunday.Get Breaking News Delivered to Your Inbox
In an announcement on its website the company said it was looking for a new owner.
Like many retailers, Lord & Taylor was already struggling with the shift to online shopping even before the pandemic struck this spring. Last year, it sold its flagship building on New York's Fifth Avenue after more than a century in the 11-story building.
The company was founded as a dry goods store in 1826. There are several dozen Lord & Taylor stores across the country.Coronavirus: The Race To Respond
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Tailored Brands, which filed for Chapter 11 Sunday in the Southern District of Texas, said it would continue to operate Men's Wearhouse and Jos. A. Banks stores, along with K&G Fashion Superstore and Moores Clothing for Men, which it also owns. It said in a release that a restructuring plan is expected to reduce the company's funded debt by at least $630 million and provide increased financial flexibility.
As many people have switched to working from home, brands that sell clothes targeted at offices workers have had a particularly hard time. Brooks Brothers and the parent company of Ann Taylor are among those that have also filed for bankruptcy.
As of July 23, roughly 40 retailers, including big and small companies, had filed for Chapter 11 bankruptcy so far this year. That exceeds the number of retail bankruptcies for all of last year. About two dozen of them have sought bankruptcy protection since the pandemic started.
Others include J. Crew, J.C. Penney, Neiman Marcus, Stage Stores, and Ascena Retail Group, which owns Lane Bryant in addition to Ann Taylor.
News Source: CBS News
Albany Man Admits To $207K Unemployment Insurance Fraud
A Capital District man could spend decades in federal prison after admitting to stealing hundreds of thousands of dollars in COVID-19 pandemic-related unemployment insurance benefits.
Prosecutors said Taylor stole the personal information of other people on social media and then used that information to file false unemployment insurance applications with the New York State Department of Labor (NYSDOL).
On one application, filed in August 2020, Taylor claimed that a person had lost work at a hotel in Latham due to “Lack of Work - COVID,” which was false, according to the US Attorney’s Office in the Northern District.
In all, prosecutors said Taylor’s scheme netted him $207,000 in benefits payments between September 2020 and June 2021.
The mail fraud and wire fraud convictions each carry a maximum sentence of 20 years in prison and fines of up to $250,000. Aggravated identity theft carries a mandatory term of two years in prison.
As part of his guilty plea, Taylor also agreed to pay full restitution to NYSDOL.
Sentencing is scheduled for Thursday, Dec. 8.