Le Tote

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Le Tote, Inc.
TypePrivate
IndustryRetail
Founded2012 (2012)
FoundersBrett Northart
Rakesh Tondon
Headquarters,
ServicesClothing rental
OwnersSaadia Group
Websitewww.letote.com

Le Tote is an online women's clothing rental business in the United States which uses a subscription box model.[1] It was founded in 2012 by Brett Northart (now President) and Rakesh Tondon (now CEO).[2][3] In 2019, Le Tote acquired Lord & Taylor.[4][5][6]

Le Tote is one of several companies renting women's clothes; competitors include Rent the Runway, The Ms. Collection, Gwynnie Bee, and Armarium.[7] While Rent the Runway focuses more on high-end, "event-driven" clothes, Le Tote mainly rents "everyday wear."[8]

In late August 2019, Le Tote finalized an agreement with Hudson's Bay Company to buy the Lord & Taylor chain for C$99.5 million in cash on closing (probably before year end 2019) plus C$33.2 million two years later. HBC was to get a 25% equity stake in Le Tote.[9] The buyer would retain the stores' inventory, with an estimated value of C$284.2 million. The deal required HBC to pay the stores' rent for at least three years, at an estimated C$77 million cash per year.[10][11]

Le Tote opened its first physical location, inside a Lord & Taylor store in the Ridge Hill Mall in Yonkers, NY, in October 2019.[12] It is referred to as a Rental Studio and customers can view a selection of inventory and sign up for the service there.

On August 2, 2020, Le Tote and subsidiary of Le Tote, Lord & Taylor filed for Chapter 11 bankruptcy protection citing the COVID-19 pandemic.[13]

References[edit]

  1. ^ Kokalitcheva, Kia (November 19, 2015). "Le Tote Bags $15 Million for its Netflix-Style Clothing Service". Fortune. Retrieved 28 August 2019.
  2. ^ Rathore, Reena (Oct 7, 2016). "'Le Tote' is Reinventing the Way Women Shop Online". India West. Retrieved 2019-08-30.
  3. ^ "TMT Investments PLC Investment in Le Tote". ADVFN (in American English). Retrieved 2019-08-30.
  4. ^ Hirsch, Lauren; Wu, Jasmine (August 28, 2019). "Hudson's Bay to sell Lord & Taylor for $100 million to clothing rental service Le Tote". CNBC. Retrieved 28 August 2019.
  5. ^ Isidore, Chris; Meyersohn, Nathaniel (August 28, 2019). "Iconic but troubled Lord & Taylor sold to clothing rental subscription company Le Tote". CNN. Retrieved 28 August 2019.
  6. ^ Pisani, Joseph (August 28, 2019). "Lord & Taylor, founded 1826, sold to Le Tote, founded 2012". Chicago Tribune. Retrieved 28 August 2019.
  7. ^ Wolfe, Nandini D’Souza. "Tired of Your Work Wardrobe? Rent Fresh Looks for (Much) Less". WSJ (in American English). Retrieved 2019-08-30.
  8. ^ Strugatz, Rachel (2015-02-05). "Le Tote Raises $8M to Expand". WWD. Retrieved 2019-08-30.
  9. ^ "Hudson's Bay to sell Lord + Taylor for $100 million". Reuters. 2019-08-29.
  10. ^ "HBC and Le Tote Enter Into Agreement for Acquisition of Lord + Taylor". www.businesswire.com. 2019-08-28.
  11. ^ "Not a 'clean exit': Hudson's Bay sells historic Lord & Taylor for $133 million". Financial Post (in Canadian English).
  12. ^ Clark, Heather. "What just opened? Le Tote rental studio pops up in Lord & Taylor, new grocery store in Cross River". The Journal News (in American English).
  13. ^ "Lord & Taylor, Oldest U.S. Department Store, Goes Bankrupt".

External links[edit]