Le Tote, a fashion rental service, has closed the deal to buy Lord & Taylor from Hudson's Bay Company.
Le Tote, a fashion rental service, closed the deal to acquire Lord & Taylor, a legendary chain of department stores from Hudson's Bay Company in Canada, with an annual revenue of $1.4 billion. The transaction amounted to $75 million in cash, plus $33.2 million in promissory notes payable two years later.
The deal included 38 operating department stores in the United States, as well as rights to the Lord & Taylor brand and various online sales channels. As part of the deal, Hudson's Bay Company will receive a small stake in Le Tote's business and focus on developing its network of 90 department stores of the same name in Canada. Previously, HBC had already sold the online store Gilt and the department store chain Galeria Kaufhof.
It is known that the new owner plans to open department stores Lord & Taylor in a new, reduced format and will review the concept of the existing store chain. Le Tote also plans to launch the service of renting dresses for subscriptions in the areas of department stores and increase the opportunities for online sales. Founded in 2012, the company specializes in the provision of clothing rental services for 79 dollars a month.