Hudsons Bay announces selling Lord & Taylor to Le Tote for USD 100 mn
Category: #retail  By Paroma Bhattacharya  Date: 2019-08-30
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Hudsons Bay announces selling Lord & Taylor to Le Tote for USD 100 mn
  • The business retail group is claimed to be paid CAD 99.5 million cash once the deal concludes and a confirmatory note of CAD 33.2 million cash after 2 years.
  • The acquisition will allow Le Tote to operate Lord & Taylor’s 38 stores along with its digital channels and inventory.

Brampton based Hudson’s Bay has reportedly announced the sales of Lord & Taylor to San Francisco based clothing rental service and company, Le Tote for a deal valued at USD 100 million.

As per trusted sources, the deal allows Lord & Taylor to continue and uplift its falling sales operations. Additionally, it would also enable the retailer group to streamline its business.

Speaking on the matter, the CEO of Hudson’s Bay, Helena Foulkes reportedly stated the group is delighted to have reached an agreement with Le Tote to restructure an advanced business model for Lord & Taylor whilst bringing together the fashion rental subscriptions combined with the traditional retail. In addition to this, the contract is said to shape its former actions enabling the group to focus on its widest opportunities.

It has been claimed that Hudson’s Bay would be paid over CAD 99.5 million cash once the deal closes and a confirmation of CAD 33.2 million cash after 2 years. Moreover, the group is also expected to obtain an equity share, membership of its committee and several rights as a shareholder in Le Tote.

The deal features that Le Tote would take over Lord & Taylor’s entities and intangible property and carry out its operations of 38 stores, its digital channels and its inventory. The rental subscription service is reported to be still in the process of fortifying the financial terms of the deal. Subsequently, if the company is unable to commit the financing within over 45 days of sealing the deal, the business retail group holds every right to dismiss the contract.

Furthermore, Le Tote aims to transform and expand Lord & Taylor’s offerings beyond the dresses which would include the adoption of the Le Tote’s core business- rental.

Source credit: https://www.cnbc.com/2019/08/28/hudsons-bay-to-sell-lord-taylor-for-100-million-to-le-tote.html



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Paroma Bhattacharya

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Paroma Bhattacharya

Paroma currently works as a content developer for Algosonline, MSF and a series of alike platforms. Fortified with a post-graduation degree in Journalism and Mass Communication, she delved head long into a writing career, creating resourceful and information enriched ...

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