Lord & Taylor sold for $100M to rental clothing company

Business

FILE – In this Oct. 4, 2018, file photo signs advertising the closing of a Lord & Taylor store are displayed in New York, Thursday. Lord & Taylor, one of the nation’s oldest department stores, is being sold for $100 million. The retailer’s owner, Hudson’s Bay Co., says it reached a deal with online rental clothing company Le Tote Inc. (AP Photo/Seth Wenig, File)

NEW YORK (AP) — Lord & Taylor, one of the nation’s oldest department stores, is being sold for $100 million to a rental clothing company.

Le Tote Inc. is buying the company from Hudson’s Bay Co., which gets a minority stake in Le Tote and will control two seats on its board.

Lord & Taylor, founded as a dry goods store in 1826, has struggled recently as more people shop online. It has closed several stores, including its flagship on New York’s Fifth Avenue, which was shut its doors for good earlier this year after more than a century in the 11-story building. There are currently 38 Lord & Taylor stores across the country.

Under the agreement Hudson’s Bay and a subsidiary will own the stores and Le Tote will operate from them.

Le Tote, created less than a decade ago in San Francisco, said Wednesday that it plans to bring clothing rental to Lord & Taylor’s customers. With clothing rental, popularized by Rent the Runway and other startups, customers pay a monthly fee to get clothes shipped to them, wear a few times and then ship them back. Traditional retailers, such as Urban Outfitters and Banana Republic, are launching their own versions.

Le Tote will pay Hudson’s Bay $75 million in cash (or 99.5 million Canadian dollars) when the deal closes, which is expected to happen before the holiday season. It will also pay Hudson’s Bay $25 million in cash (or 33.2 million Canadian dollars) after two years.

Hudson’s Bay, based in Canada, also owns Saks Fifth Avenue.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don't Miss

More Don't Miss

Trending Stories

Turkey Day Giveaway

Days

Hours

Minutes

Seconds

Recent Videos

4-year-old saves drowning sister

Thumbnail for the video titled "4-year-old saves drowning sister"

Pure Horror: Blood flood fills Iowa family's basement!

Thumbnail for the video titled "Pure Horror: Blood flood fills Iowa family's basement!"

Fighting For Their Flag: Family Takes On HOA

Thumbnail for the video titled "Fighting For Their Flag: Family Takes On HOA"

Animals taken from Iowa Park home, Silent clips, compiled

Thumbnail for the video titled "Animals taken from Iowa Park home, Silent clips, compiled"

Animals taken from Iowa Park Home vid8

Thumbnail for the video titled "Animals taken from Iowa Park Home vid8"

Animals taken from Iowa Park Home vid7

Thumbnail for the video titled "Animals taken from Iowa Park Home vid7"

Animals taken from Iowa Park Home vid6

Thumbnail for the video titled "Animals taken from Iowa Park Home vid6"

Animals taken from Iowa Park Home vid5

Thumbnail for the video titled "Animals taken from Iowa Park Home vid5"

Animals taken from Iowa Park Home vid4

Thumbnail for the video titled "Animals taken from Iowa Park Home vid4"

Animals taken from Iowa Park Home vid3

Thumbnail for the video titled "Animals taken from Iowa Park Home vid3"

Animals taken from Iowa Park Home vid2

Thumbnail for the video titled "Animals taken from Iowa Park Home vid2"

Animals taken from Iowa Park Home vid1

Thumbnail for the video titled "Animals taken from Iowa Park Home vid1"
Get FREE Text Alerts
Report It

Latest News

More Local News