Hudson's Bay is selling off Lord + Taylor to a fashion rental company
Lord + Taylor is headed to a new rack.
Canadian retailer Hudson's Bay Company announced Wednesday it will sell off the legendary department store to Le Tote, Inc. The fashion rental company will pay $75 million cash in two years for Lord + Taylor, though Hudson's Bay isn't relinquishing all of its power over its store just yet.
The $75 million deal will be split into two cash payments: $50 million right now, and another $25 million in two years. It comes after Lord + Taylor turned $1.1 billion in sales last year — a consistent downturn the company has shown since 2016. Hudson's Bay sold off Lord + Taylor's flagship Manhattan store last year to the co-working space magnate We Company. But in this instance, Hudson's Bay will retain a 25 percent stock in Lord + Taylor, and will keep two seats on its board, its press release said.
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Le Tote currently boasts an estimated $1 billion valuation that's expected to hit $2.3 billion by 2023 as the rental fashion industry grows, CNN notes. Le Tote is already touting its new acquisition on its website, saying that subscribers can look forward to "more brands, styles and 1,000's of options for you to rent."
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Kathryn is a graduate of Syracuse University, with degrees in magazine journalism and information technology, along with hours to earn another degree after working at SU's independent paper The Daily Orange. She's currently recovering from a horse addiction while living in New York City, and likes to share her extremely dry sense of humor on Twitter.
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