Le Tote should have been a dream come true for fashion lovers. The fashion rental service provided a rotating closet of stylish clothes and accessories shipped to your door for a flat monthly fee. You got that new-clothes thrill without having to hit the mall or spend more than you’d budgeted. The service launched in 2012 and quickly became popular among budget fashionistas like me.
By 2024, Le Tote’s website was gone, and the service had been shut down. What went wrong? Even the best ideas can fail due to bad timing, risky decisions, and tough competition. Let’s see how Le Tote went from a rising star to a cautionary tale.
Early days of Le Tote
Le Tote started in 2012 with a simple plan. You paid $49 monthly for regular shipments containing three clothing items and two accessories. You could keep them as long as you wanted, send them back once-monthly for new items, or buy your favorite pieces at a discount.
The rental subscription appealed to busy, budget-conscious shoppers. I subscribed myself for a long while — see my Le Tote review and a comparison of Le Tote to Haverdash. But problems eventually surfaced. Competition heated up, as brands like Haverdash, Modern Mom Style Box, and Infinitely Loft opened their doors. With more options available, Le Tote couldn’t afford to disappoint its customers. Pricing, shipping, and clothing selection had to be top-notch — otherwise customers would switch.
I know I did. I subscribed for Haverdash and Modern Mom Style Box after tiring of Le Tote. I didn’t have service problems with Le Tote, but the other two options had cheaper plans.
Gambling on Lord & Taylor
In 2019, Le Tote bought the revered department store chain Lord & Taylor. Lord & Taylor had initially opened its doors in 1826 and became known for its fancy displays and fun holiday dresses. But it was a victim of the digital age. By the 2010s, Lord & Taylor was struggling. Le Tote bought the chain for $100 million — hoping to create a fashion powerhouse by combining retail and rental.
The vision was to revive Lord & Taylor stores and its online business, using data and technology to guide the brand’s return to greatness. In the process, Le Tote would integrate its rental business into the chain. The grand plan included a return to profitability for Lord & Taylor within 12 months and a Le Tote IPO down the road.
Bankruptcy
Then came 2020 and a global pandemic. COVID-19 closed malls, canceled events, and turned work outfits into sweatpants. Spending on fashion — including Le Tote’s rental program — tanked. Le Tote and Lord & Taylor filed for bankruptcy in August. Le Tote’s debt balance was $138 million. Lord & Taylor began the search for a new owner/investor and Le Tote struggled to refocus on its core business.
The Saadia Era
In October 2020, fashion holding company Saadia Group bought the Le Tote and Lord & Taylor assets at a bankruptcy auction for $12 million. The new investor continued running Le Tote’s rental business and rebooted Lord & Taylor as an online store in 2021. But there was to be no resurgence for either brand. Le Tote’s service fell apart. In February 2024, Le Tote’s operational failures inspired a local news story about the company’s shipping delays and customer support issues.
The ending was chaotic. In March 2024, Saadia defaulted on a $45.3 million loan, leading to layoffs and lawsuits. Vendors sued for unpaid bills. By April, Le Tote’s website disappeared.
Another fashion brand fail
So, what happened to Le Tote? The brand lost its way amid big dreams and bad timing. Le Tote’s acquisition of Lord & Taylor was doomed from the start. It was a bad marriage between a young tech company and a bloated retail chain that had lost its customer base. The pandemic exposed the flawed strategy and expedited the demise of both brands. In the end, Saadia couldn’t execute Le Tote’s rental business or lure customers to Lord & Taylor’s online store.
Meanwhile, competing rental companies Haverdash and Nuuly kept their offerings simple and focused. They’re still in operation today, while Le Tote has joined the fashion brand graveyard after failing to deliver on its budget fashion promise.
