Lord & Taylor are being sold to clothing stores for $ 100 million

Lord & Taylor, one of the oldest department stores in the country, is currently being sold for $ 100 million to a rental company.

Le Tote Inc. from San Francisco, the company purchased from Hudson & # 39; s Bay Company and paid in advance $ 75 million and the remaining balance over a two-year period.

Hudson's Bay Company acquires a minority interest in Le Tote in addition to two seats on the company's board, ABC news reports.

Lord & Taylor was founded as a dry store in 1826, but the struggling store has had to close many of its stores as more people turn to online shopping.

Le Tote was founded less than ten years ago, but hopes to bring their fresh canvas rental plan to the outdated store and its customer base

In early 2019, the company even closed its flagship store on Fifth Avenue in New York. The store had been in the 11-storey building for more than a century.

There are currently 38 Lord & Taylor stores across the country.

Hudson's Bay and a subsidiary will still own the stores, but Le Tote will operate from their facilities.

Le Tote was founded less than ten years ago, but hopes to bring their fresh canvas rental plan to the outdated store and its customer base.

Customers pay a monthly fee to have clothing sent to them before they have to be returned after a few days. The model has been made popular by Rent the Runway, who even have a flagship store on W. 15th Street in Manhattan.

Hudson & # 39; s Bay is based in Canada and also owns Saks Fifth Avenue.

The news comes less than a month after the luxury department store, Barneys, announced it is filing for bankruptcy. The store said it closed 15 of the 22 remaining locations, keeping the store in New York City open.