The Hudson’s Bay Company (HBC) is selling Lord & Taylor for $100 million.
The retail giant announced details of the sale on Wednesday morning, with Le Tote, Inc. named as the company acquiring Lord & Taylor.
Le Tote is described as clothing rental brand, and will use its technology and innovation combined with Lord & Taylor’s traditional store footprint to offer its customers a new experience.
“We’re excited to have reached an agreement with Le Tote that creates a new model for Lord + Taylor, bringing together fashion rental subscriptions with traditional retail. Following an extensive review of strategic alternatives, Le Tote’s leadership and innovative approach is the best path forward for Lord + Taylor, its loyal customers, and dedicated associates,”said Helena Foulkes, HBC’s CEO.
- Hudson’s Bay selling its Lord & Taylor flagship store to WeWork for $1B
- Hudson’s Bay receives $4.5 billion bid for its German stores: report
Under the terms of the agreement, Le Tote will acquire the Lord & Taylor brand and related intellectual property while assuming operations of 38 stores, its digital channels, and inventory.
According to Hudson’s Bay, Le Tote expects to extend employment offers to the vast majority of Lord & Taylor’s associates.
In 2018, Lord & Taylor represented $1.4 billion of HBC’s $9.4 billion in retail sales.
Le Tote is currently in the process of securing financing for the full purchase price. The transaction is expected to close before the start of the 2019 holiday season.