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As part of the contract with Hudson’s Bay Company, Lord & Taylor’s parent firm, Le Tote will now efficiently manage all remaining 38 stores and online businesses.
FREMONT, CA: Le Tote, the Indian American-led company, has purchased department store chain Lord & Taylor for $75 million. According to reports in the acquirement by San Francisco-based clothing subscription service Le Tote, co-founded by Rakesh Tondon, there is a secured promissory note for $25 million after two years. As part of the contract with Hudson’s Bay Company, Lord & Taylor’s parent firm, Le Tote will now efficiently function all remaining 38 stores and online businesses.
Helena Foules, CEO of Hudson’s Bay in a press statement, said, “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.” Furthermore, she added, “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.”
Established in San Francisco in 2012, Le Tote was an early participant to the subscription clothing market, following the debut of businesses such as Rent The Runway in 2009, the report said. Akin to models like Stitch Fix, Le Tote members receive a monthly Tote of tailored clothing items, from which they can keep what they like and return the rest, it said.
Le Tote’s press release also mentioned, “Proprietary technology, data, and innovation combined with Lord & Taylor’s traditional store footprint, e-commerce presence, and merchandise selection will offer customers a new experience in the mid-market segment.”
“Since founding Le Tote, it’s been our mission to push the boundaries of retail,” Tondon said in a statement. “We’ve strived to lead the charge in developing innovative, intuitive, value-driven ways for customers to engage and consume.”
The acquirement also mirrors the latest efforts by conventional retailers to revitalize their flailing brands through partnerships with young, buzzy businesses in emerging sectors of retail comprising subscription, rental, and consignment.
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