Le Tote Buys Lord and Taylor for $100 Million USD
It’s a sign of the times. A seven year old fashion rental company has bought the famed Lord & Taylor for $100 million. Le Tote is a young fashion rental company that has experienced great success next to its competitors like Rent the Runway. Now, that success has turned into a take over. No one could’ve ever guessed such a young company would take the helm of a fashion giant like Lord & Taylor.
It’s no secret that department stores across all price brackets are closing down. From moderate companies like Macy’s to luxury department store like Barney’s, they’re all taking hard hits they can’t come back from. This feels like a last ditch effort to get younger audiences excited about luxury fashion.
Nonetheless younger demographics are buying into these rental companies. It’s an easy and fast way to get the latest looks without actually spending an arm and a leg for them. Le Tote was founded in 2012 by a Rakesh Tondon an ex investment banker, ever since then it’s been uphill profits. With this acquisition, Le Tote will have control over the remaining 38 Lord & Taylor stores as well as their e-commerce and all intellectual property.
So why is this such a big deal? It’s a sign of changing times. New brands are coming in who reflect the values of the new fashion consumer. It’s no longer about fancy department stores, exotic fabrics and spending boat loads of money on clothes you’ll wear once. The new fashion consumer is an ethical hard-working individual who may not have the funds to buy the latest and greatest off the runway. They try to thrift most of their clothes and avoid fast fashion at all costs. Companies like Le Tote are tapping into this and are changing the face of traditional retail.