SourcingJul 31, 2025
De Beers Records $189M First-Half Loss The diamond miner and marketer warned last week that it expected to be in the red after significantly cutting prices in Q2.
MajorsAug 29, 2019
Clothing Rental Service Plans to Acquire Lord & Taylor
Le Tote will keep the retailer’s 38 locations open for now, but redevelopment may be on the table in 2021.
The flagship Lord & Taylor store on Manhattan’s Fifth Avenue was sold to WeWork earlier this year. The Hudson’s Bay Co.-owned department store chain is in the process of being acquired by Le Tote, a company that rents out women’s clothing and accessories.
Toronto—Hudson’s Bay Co. has agreed to sell Lord & Taylor to clothing rental subscription service Le Tote for 99.5 million Canadian dollars ($100 million), the company announced Wednesday morning.
Lord & Taylor’s 38 locations will remain open, with Le Tote assuming responsibility for the operations and extending employment offers to the “vast majority” of associates.
“Following an extensive review of strategic alternatives, Le Tote’s leadership and innovative approach is the best path forward for Lord & Taylor, its loyal customers and dedicated associates,” HBC CEO Helena Foulkes said in a statement.
The Toronto-based company’s portfolio also includes retailers Hudson’s Bay, Saks Fifth Avenue and Saks Off 5th.
As per the terms of the deal, Le Tote will also acquire Lord & Taylor’s brands, intellectual property, digital channels and inventory.
Le Tote, founded in 2012, rents out women’s clothing and accessories for a flat monthly fee, with the option to then purchase them at a discount.
The company has notable backers, including venture capital firm Andreessen Horowitz and Google Ventures, and has partnered with brands like Calvin Klein, Kate Spade, Rebecca Minkoff and Vince Camuto.
Le Tote will pay CA$99.5 million ($75 million) in cash upon closing the deal and a secured promissory note of CA$33.2 million ($25 million), which is payable in cash after two years.
The company is still working on securing financing for the full purchase price but expects to close before the start of the 2019 holiday season.
If Le Tote can’t raise the money within 45 days of signing, HBC can terminate the agreement.
Hudson’s Bay will receive an equity stake in Le Tote and certain minority shareholder rights as well as two seats on its board.
HBC and its real estate joint venture, HBS Global Properties, will retain ownership of all Lord & Taylor-related owned and ground-leased property. The company will continue to pay the rent for the next three years; it expects to be liable for approximately $58 million in Lord & Taylor rent on an annual basis.
In 2021, the two companies can reassess the store network and discuss the best use of the locations, including the possibility of redeveloping the stores into mixed-use properties.
HBC has hired a team to focus on the potential redevelopment plans.
It will be responsible for the long-term rents and costs for redevelopment for any returned or recaptured stores. (A recapture clause refers to a stipulation in a contract that allows the seller of an asset
to take it back under certain conditions.)
HBC sold Lord & Taylor’s flagship store on New York’s Fifth Avenue to WeWork earlier this year.
Lord & Taylor’s fiscal 2018 sales accounted for $1.4 billion of HBC’s $9.4 billion in retail sales, but HBC’s balance sheet reflects a $119 million loss attributable to Lord & Taylor, inclusive of allocated corporate expenses.
PJ Solomon acted as financial advisor to HBC and Willkie Farr & Gallagher LLP acted as its legal advisor. Le Tote was advised by Citi, as its financial advisor, and Kirkland & Ellis LLP, as its legal advisor.
HBC sold Lord & Taylor’s flagship store on New York’s Fifth Avenue to WeWork earlier this year.
Lord & Taylor’s fiscal 2018 sales accounted for $1.4 billion of HBC’s $9.4 billion in retail sales, but HBC’s balance sheet reflects a $119 million loss attributable to Lord & Taylor, inclusive of allocated corporate expenses.
PJ Solomon acted as financial advisor to HBC and Willkie Farr & Gallagher LLP acted as its legal advisor. Le Tote was advised by Citi, as its financial advisor, and Kirkland & Ellis LLP, as its legal advisor.
More on Majors
The Latest
Events & AwardsJul 31, 2025
These Are the 2025 CASE Award WinnersJewelers of America’s 35th annual design contest recognized creativity, artistry, style, and excellence.
IndependentsJul 31, 2025
Matthew Tratner Takes Over as CBG President Tratner succeeds Andie Weinman, who will begin stepping back from the buying group’s day-to-day operations.
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine JewelryAs a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.
Policies & IssuesJul 30, 2025
Tariff on India Will Be 25%, Trump Says The president made the announcement via Truth Social Wednesday, adding that India also will face a penalty for its dealings with Russia.
Weekly QuizJul 31, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
FinancialsJul 30, 2025
Kering's Jewelry Brands Resilient As H1 Sales Slide 16%The luxury titan’s star brand Gucci continued to struggle amid a "tough" environment.
WatchesJul 30, 2025
Peek Inside Zadok Jewelers’ New Rolex Showroom in AustinIts opening marks the completion of the retailer’s new 11,000-square-foot store in the Texas capital.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
SurveysJul 30, 2025
Consumer Confidence Ticks Up in JulyRespondents shared concerns about tariffs and commentary on the “Big Beautiful Bill.”
SourcingJul 30, 2025
Rob Bates to Release Latest Book in His ‘Diamond District Mystery’ Series“Making a Killing in Diamonds” tells the story of Mimi Rosen, the disappearance of a scientist, and the murder of lab-grown diamond CEO.
EditorsJul 29, 2025
Out & About: Visiting Tacori’s Design Studio in LASenior Editor Lenore Fedow learned a lot when she took a behind-the-scenes factory tour with the jewelry brand earlier this year.
Events & AwardsJul 29, 2025
Melee The Show Welcomes 15 New DesignersThe first-time exhibitors, set to debut at the New York City show, share a devotion to craftsmanship, storytelling, and material integrity.
SourcingJul 29, 2025
Auctim to Offer 7.3M+ Carats of Rough EmeraldsThe online auction house’s September sale will feature rough Brazilian emeralds of various qualities.
Policies & IssuesJul 28, 2025
U.S.-EU Come to Agreement on Tariffs Announced Sunday, the deal will set the tax on goods imported into the United States from the European Union at 15 percent.
CollectionsJul 28, 2025
Nanis Brings a New Palette to ‘Ipanema’A new edition of the Italian brand’s “Ipanema” collection has debuted with gemstones that evoke Brazil’s breathtaking views.
IndependentsJul 28, 2025
Sissy’s Log Cabin to Open Flagship in Arkansas The jeweler’s largest store yet is set to open in Little Rock next fall.
CollectionsJul 25, 2025
Piece of the Week: Jemma Wynne’s ‘Forme’ NecklaceAnne Hathaway was seen wearing the toggle necklace three times while filming scenes for “The Devil Wears Prada 2.”
Events & AwardsJul 25, 2025
Pre-Registration Open for September Hong Kong ShowJewellery & Gem World Hong Kong is scheduled for Sept. 15 to 21, and buyer pre-registration will be available until Sept. 7.
FinancialsJul 25, 2025
LVMH Sales Slip in H1 Amid ‘Prevailing Uncertainties’Renovations at Tiffany & Co. stores ate into profits in the company’s watch and jewelry division.
Events & AwardsJul 24, 2025
2 Retailers to Receive 2026 Gem Award for Lifetime AchievementMark and Candy Udell of London Jewelers will receive the honor at the 24th annual Gem Awards next March.
SourcingJul 24, 2025
De Beers Sees Diamond Production Sink 36% in Q2 While struggles continue at the mining and trading end of the pipeline, consumer demand for diamond jewelry is holding steady.
CollectionsJul 24, 2025
Francesca Villa Adds Dimension to Her Intaglio CharactersThe “Fantasia” jewelry collection turns the intaglio animals from her “Close Encounters” collection into 3D characters.
WatchesJul 24, 2025
Breitling Drops Super Bowl Watch Honoring the Philadelphia Eagles The special Classic Avi Chronograph 42 with an Eagles-green dial is limited to 59 pieces, a nod to the Super Bowl Philadelphia just won.
CrimeJul 23, 2025
JSA Warns of Violent String of Smash-and-Grabs in California JSA has received reports of mobs swarming jewelry stores, driving cars into the storefront or smashing through the windows.
CollectionsJul 23, 2025
Silvia Furmanovich’s ‘Kashmir’ Collection Is a Tribute to Northern IndiaThe “Kashmir” collection features centuries-old craft techniques made in collaboration with the region’s master papier-mâché artisans.
IndependentsJul 23, 2025
Montreal’s Ecksand Eyes Move to SoHoCreative Director Erica Bianchini shared why the jeweler is looking to expand into the U.S. and how it’s putting Canadian craftsmanship on the map.
IndependentsJul 23, 2025
IJO Raises Nearly $37K for LA Fire Relief Two Los Angeles Fire Department stations plan to use the donations to upgrade their equipment and tools.
