Hudson's Bay to sell Lord + Taylor for $100 mln
Adds details, background
Aug 28 (Reuters) - Hudson's Bay Co HBC.TO said on Wednesday it would sell its Lord + Taylor department store operations to San Francisco-based fashion rental service company Le Tote Inc for about $100 million.
The deal comes months after Hudson's Bay chairman offered to take the struggling Canadian retailer private in a C$1.74 billion deal.
Hudson's Bay will get C$99.5 million ($74.95 million) in cash when the deal closes and another C$33.2 million in cash after two years. It will also receive an equity stake in Le Tote and two seats on the firm's board.
Hudson's Bay, North America's oldest company, said in May it was pursuing strategic alternatives such as a sale or merger for its department store Lord + Taylor, which has struggled to attract shoppers.
Lord + Taylor has seen its fortunes fall while Hudson's Bay's luxury department store Saks Fifth Avenue has managed to increase sales.
In fiscal 2018, Lord + Taylor represented $1.4 billion of HBC's $9.4 billion in retail sales, the company said in a statement.
Under the deal, Le Tote will acquire Lord + Taylor brand and related intellectual property, while assuming operations of 38 stores, Lord + Taylor's digital channels and the associated inventory.
($1 = 1.3275 Canadian dollars)
(Reporting by Debroop Roy in Bengaluru; Editing by Anil D'Silva)
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