HBC to sell off Lord & Taylor

TORONTO — Hudson’s Bay Co. has reached an agreement for the sale of its Lord & Taylor banner to Le Tote, a San Francisco-based clothing rental subscription business. Under the terms of the deal, Le Tote will pay $100 million for ownership of the Lord & Taylor brand and inventory and control of its 38 stores, while HBC will retain title to the real estate and a minority equity stake in the business.

The two companies have also agreed to review the performance of the banner’s stores in three years, leaving the door open for Hudson’s Bay to retake some locations. “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,” HBC CEO Helena Foulkes said in a release. For its part, Le Tote said it would keep “the vast majority” of existing Lord & Taylor employees.