Lord & Taylor to buy Fortunoff

WESTBURY, N.Y. Fortunoff today annouced that it is filing for bankruptcy and will sell its business to an affliate of NRDC Equity Partners, the owner of the Lord & Taylor department store chain.

"We are excited by the opportunities presented by affiliating with Lord & Taylor. It has been a difficult retail environment and capital constraints have limited our expansion opportunities. This transaction will help realign our capital structure and provide an avenue for future growth," said Arnold Orlick, Fortunoff's chief executive. "Fortunoff is a strong brand that has provided quality retail services to customers for more than 80 years. We look forward to restructuring our business under a new owner."

Richard Baker, chairman of Lord & Taylor and ceo of NRDC Equity Partners, said his company plans to invest $100 million into the Fortunoff business.

During the bankruptcy process, other parties will be allowed to make competing bids for Fortunoff, the companies reported. The sale is expected to close in early March, subject to the approval of the Bankruptcy Court.