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Off Brand
Could Airbnb Acquire Delta, Snap Scoop up Viacom, or Lyft Buy GM?
If we look at the recent history of startups swallowing iconic brands, the answer is yes.
Earlier this year, Canadian retail firm Hudson’s Bay made it known that it was considering selling off one of its properties: the “iconic” Lord & Taylor department store chain. Founded in 1826 and a staple at malls across America, Lord & Taylor’s revenue last year was around $1.1 billion. But like other department stores, it has struggled to adjust to the digital era, closing stores and even selling its storied, flagship Fifth Avenue location to WeWork; it lost about $90 million last year.
A few weeks ago, a buyer emerged: Le Tote. That name is likely less familiar, given that it’s a seven-year-old startup that is part of the retail trend du jour: clothing rental. Le Tote’s revenue is reportedly about a tenth of Lord & Taylor’s — and indeed, revenue for the entire clothing-rental category is estimated about $1 billion. Le Tote, a private company reportedly valued at around $180 million with backers including Andreessen Horowitz and Google Ventures, is not even the alpha dog in its category, with less recognition than Rent The Runway. The deal has some unusual details, but the big picture is that Le Tote is paying about…
