Aug. 28 (UPI) -- Online fashion subscription service Le Tote acquired department store Lord & Taylor for $75 million on Wednesday.
Under the agreement, Le Tote will acquire the Lord & Taylor brand, its digital channels and the associated inventory while maintaining its 38 brick-and-mortar retail stores and planning to extend employment offers to most of Lord & Taylor's associates.
"We're excited to bring Le Tote together with Lord & Taylor, a storied brand that has stood for quality, style and service for nearly two centuries," Le Tote CEO Rakesh Tondon said. "With this acquisition, we continue our journey in creating the future of retail."
Hudson's Bay Company, which owns Lord & Taylor, will receive $75 million in cash, a $25 million promissory payable in cash in two years and an equity position in Le Tote as part of the deal.
"We're excited to have reached an agreement with Le Tote that creates a new model for Lord & Taylor bringing together fashion rental subscriptions with traditional retail," HBC CEO Helena Foulkes said.
HBC will continue to pay rent on Lord & Taylor's retail locations for at least the next three years, with the option to reclaim some stores in 2021.