Hudson's Bay Company is selling Lord & Taylor to clothing rental subscription service Le Tote for $100 million. As part of the deal, Hudson's Bay will retain ownership of its Lord & Taylor real estate and, starting in 2021, it has the right to reassess and potentially redevelop these locations.
The deal 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. "