Le Tote

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, Inc.
TypePrivate
IndustryRetail
Founded2012 (2012)
FoundersBrett Northart
Rakesh Tondon
Headquarters
San Francisco, California
,
U.S.
ServicesClothing rental
Websitewww.letote.com

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
  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. 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. 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.
  12. Clark, Heather. "What just opened? Le Tote rental studio pops up in Lord & Taylor, new grocery store in Cross River". The Journal News.
  13. "Lord & Taylor, Oldest U.S. Department Store, Goes Bankrupt".
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