Le Tote
 | |
| Company type | Private |
|---|---|
| Industry | Retail |
| Founded | 2012 |
| Founders | Brett Northart Rakesh Tondon |
| Headquarters | , |
| Services | Clothing rental |
| Owners | Saadia Group |
Le Tote was an online women's clothing rental business in the United States which used a subscription box model.[1] It was founded in 2012 by Brett Northart and Rakesh Tondon.[2][3] In 2019, Le Tote acquired Lord & Taylor.[4][5][6]
Le Tote was one of several companies renting women's clothes; competitors included 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 rented "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 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][12]
On August 2, 2020, Le Tote and subsidiary of Le Tote, Lord & Taylor filed for Chapter 11 bankruptcy protection citing the COVID-19 pandemic. They were purchased by the investment firm Saadia Group on October 20, 2020. [13]
Also in 2020, Le Tote sued Urban Outfitters over its clothing rental service, Nuuly. The lawsuit claimed that during negotiations for a proposed acquisition of Le Tote in 2019, Urban Outfitters received confidential business information from Le Tote, and used it in developing Nuuly. A trial in the Eastern District of Pennsylvania resulted in a unanimous jury verdict in favor of Urban Outfitters.[14]
As of March 1, 2024, Women's Wear Daily reported that the Saadia Group had been "effectively shut down. Moreover, legal proceedings involving its asset-based lender mean Saadia no longer has control of the inventory at its warehouses following a default on a $45.3 million loan agreement".[15]
The Le Tote website was taken offline in the spring of 2024, following months of consumer complaints about delayed shipments and difficulty cancelling the service.[16] The final Archive.org snapshot is dated February 19, 2024.[17]
Reference
[edit]- ^ Kokalitcheva, Kia (November 19, 2015). "Le Tote Bags $15 Million for its Netflix-Style Clothing Service". Fortune. Retrieved 28 August 2019.
- ^ Rathore, Reena (Oct 7, 2016). "'Le Tote' is Reinventing the Way Women Shop Online". India West. Retrieved 2019-08-30.
- ^ "TMT Investments PLC Investment in Le Tote". ADVFN. Retrieved 2019-08-30.
- ^ 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.
- ^ 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.
- ^ Pisani, Joseph (August 28, 2019). "Lord & Taylor, founded 1826, sold to Le Tote, founded 2012". Chicago Tribune. Retrieved 28 August 2019.
- ^ Wolfe, Nandini D’Souza. "Tired of Your Work Wardrobe? Rent Fresh Looks for (Much) Less". WSJ. Retrieved 2019-08-30.
- ^ Strugatz, Rachel (2015-02-05). "Le Tote Raises $8M to Expand". WWD. Retrieved 2019-08-30.
- ^ "Hudson's Bay to sell Lord + Taylor for $100 million". Reuters. 2019-08-29. Archived from the original on August 31, 2019.
- ^ "HBC and Le Tote Enter Into Agreement for Acquisition of Lord + Taylor". www.businesswire.com. 2019-08-28.
- ^ "Not a 'clean exit': Hudson's Bay sells historic Lord & Taylor for $133 million". Financial Post.
- ^ Clark, Heather. "What just opened? Le Tote rental studio pops up in Lord & Taylor, new grocery store in Cross River". The Journal News.
- ^ "Lord & Taylor, Oldest U.S. Department Store, Goes Bankrupt".
- ^ Hall, Meghan (2024-04-18). "Effectively Defunct Le Tote Loses Trade Secrets Lawsuit to Urban Outfitters". Sourcing Journal. Retrieved 2024-10-04.
- ^ Moin, David (2024-03-01). "Inside the Demise of Lord & Taylor". WWD. Retrieved 2024-10-04.
- ^ "Customers report shipping delays, membership issues with popular fashion rental service Le Tote". 6abc Philadelphia. 2024-02-05. Retrieved 2024-10-04.
- ^ "Le Tote - Personalized Clothing Subscription & Rented Fashion". 2024-02-19. Archived from the original on 2024-02-19. Retrieved 2024-10-04.