Canadian retailer Hudson's Bay Company (HBC) has announced it is selling luxury department store chain Lord & Taylor to fashion rental subscription service Le Tote in a 100 million dollar deal.
The deal will see Le Tote acquire the Lord & Taylor brand and related intellectual property while assuming operations of its 38 stores, digital channels and associated inventory.
HBC will receive 99.5 million Canadian dollars (75 million US dollars) in cash when the transaction closes and a further 33.2 million Canadian dollars (25 million US dollars) payable in cash after two years. It will additionally receive an equity stake in Le Tote, two seats on the company’s board of directors and certain rights as a minority shareholder.
Le Tote expects to extend employment offers to the “vast majority” of Lord + Taylor’s associates.
Le Tote buys Lord & Taylor for 100 million dollars
Commenting on the acquisition in a statement, CEO of HBC, Helena Foulkes, said: “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. For HBC, this transaction builds upon our previous bold actions, further enabling us to focus on our greatest opportunities, Saks Fifth Avenue and Hudson’s Bay.”
Le Tote CEO and founder Rakesh Tondon, added: “Since founding Le Tote, it’s been our mission to push the boundaries of retail. We’ve strived to lead the charge in developing innovative, intuitive, value-driven ways for customers to engage and consume. We’re excited to bring Le Tote together with Lord & Taylor, a storied brand that has stood for quality, style and service for nearly two centuries. With this acquisition, we continue our journey in creating the future of retail.”
Photo credit: Lord & Taylor, Facebook