CNBC reports Hudson’s Bay Company is selling Lord & Taylor to clothing rental subscription service Le Tote for $100 million.
The deal, announced Wednesday, allows the department store chain to continue and potentially transform operations as its sales have fallen and it’s lost touch with today’s shoppers. It will also allow Hudson’s Bay, owner of Saks Fifth Avenue and Hudson’s Bay in Canada, to further simplify its business, as Executive Chairman Richard Baker looks to take the company private while the retailer grapples with sweeping industry change.
“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,” said Hudson’s Bay CEO Helena Foulkes in a statement. ”…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.”
Hudson Bay company owns Saks, Off 5th, Lord & Taylor. They recently purchased but later ‘flipped’ the flash sale site Gilt.com
It appears some of Lord & Taylor’s 38 stores may remain open for some time and have a main rental section, where people can subscribe to a rental service to rent clothing for $79 a month, as well as regular clothing, but it seems the exact details are a bit murky.