HBC to sell Lord + Taylor to venture-backed Le Tote for $100 mln
Canadian retailer Hudson's Bay Co (TSX: HBC) has agreed to sell its Lord + Taylor department store operations to Le Tote Inc, a San Francisco-based fashion rental subscription service. HBC will receive about $100 million and a promissory note for $33.2 million. It will also secure a minority stake in Le Tote and two board seats. Le Tote will gain Lord + Taylor's brand and intellectual property, operation of 38 stores, as well as digital channels and inventory. HBC, which is currently reviewing a $1.74 billion take-private acquisition, said the agreement followed a review of strategic alternatives for Lord + Taylor. Le Tote is backed by Andreessen Horowitz, Azure Capital Partners, GV, Lerer Hippeau Ventures, Sway Ventures, Y Combinator and other investors.
