New York City Lord & Taylor has received a $60 million cash injection from owner NRDC Equity Partners, an investment firm run by New York real-estate mogul Richard Baker, according a report in the New York Post.
The news comes as some industry insiders said they expected Lord & Taylor's business might be disrupted this spring after a disappointing holiday season and an increase in tightened credit, sources said.
NRDC, which also recently acquired Hudson's Bay department-store chain, has recently paid down $280 million in debt for Lord & Taylor, the report said, citing a source familiar with the matter.
The report also said that Lord & Taylor has renegotiated its loans to reduce its annual interest expense by $70 million. Meanwhile, the Hudson's Bay department stores are getting a $70 million infusion to support operations.
Sources told the New York Post that the company believes its sales are outpacing those of its luxury peers partly because of a strategy to keep its prices at more modest levels, the report said.