What Happened to Le Tote?
At one point, Le Tote seemed like the future of how we’d all get dressed. The idea was simple but fresh: why buy a closet full of clothes you’d wear a few times when you could rent them instead? For a monthly fee, you’d get a “tote” of clothes and accessories shipped straight to your door, wear them as much as you liked, and then send them back when you wanted something new.
Le Tote promised to help people look stylish without endlessly shopping—and without the guilt of fast fashion waste. For a while, it really worked. The company attracted busy young professionals who loved the idea of having a revolving wardrobe without the closet clutter or massive price tags.
But just like so many bold retail ideas, the road for Le Tote didn’t stay smooth for long. The company hit some big bumps—including a risky department store buyout, intense competition, and a global pandemic that made renting clothes suddenly feel unnecessary.
Now, many people are left wondering: What happened to Le Tote? Is the brand gone for good? Could it make a comeback? Let’s break down the full story—how Le Tote started, how it grew, what went wrong, and whether there’s any chance this once-hot rental service could still stick around.
How Le Tote Got Started: A New Way to Shop
– Founded in 2012:
Le Tote launched in San Francisco with the mission to give people a Netflix-style wardrobe. Instead of buying clothes outright, members paid a monthly subscription to rent everyday styles and send them back when they were done.
– Focused on everyday fashion:
Unlike Rent the Runway, which focused more on fancy dresses and special-occasion looks, Le Tote zeroed in on “work to weekend” outfits—blouses, casual dresses, office-ready basics—things you’d wear day-to-day.
– Growing with busy professionals:
The service hit a sweet spot with women who wanted to look polished at work and fresh on weekends without repeating outfits or spending hours shopping. The price point was reasonable compared to buying multiple new outfits every month.
– Data-driven styling:
Le Tote prided itself on using data to personalize each tote. Members filled out style profiles, and the company used algorithms plus human stylists to pick pieces shoppers would actually wear.
Le Tote’s Big Moment: Expansion and Acquisition
– A growing subscription base:
For several years, Le Tote grew steadily. It marketed itself as a practical answer to fast fashion waste and the hassle of overstuffed closets. Its simple shipping system made swapping clothes as easy as dropping a bag at the post office.
– A bold move into brick-and-mortar:
In 2019, Le Tote made a surprising—and risky—move. It bought Lord & Taylor, America’s oldest department store, for $100 million plus debt. The plan was to blend Le Tote’s digital rental model with a physical retail presence.
– The idea behind the deal:
The company hoped it could drive new traffic into Lord & Taylor’s stores by turning them into rental hubs and showrooms, while also reviving the struggling department store chain by attracting younger, subscription-loving shoppers.
The Downfall: What Went Wrong for Le Tote
At first, the Lord & Taylor deal looked ambitious—but a mix of bad timing and global crisis turned it into a nightmare.
– Heavy debt and big costs:
Taking over a legacy retail chain wasn’t cheap. Le Tote took on Lord & Taylor’s stores, staff, and debt just as physical retail was facing massive headwinds.
– The pandemic hit:
Within months of the acquisition, COVID-19 shut down stores across the country and froze people’s social lives. Suddenly, nobody needed rental work clothes or weekend brunch dresses. Loungewear and sweatpants took over instead.
– Bankruptcy for both:
By August 2020, the pandemic’s blow proved too much. Both Le Tote and Lord & Taylor filed for bankruptcy. Stores closed, staff were let go, and the department store chain was sold off to Saadia Group.
– Rental paused:
Le Tote’s core rental service was suspended. The once-busy shipping warehouses went quiet. Subscribers were left wondering if the company would ever restart.
Is Le Tote Still in Business?
– Website goes quiet:
Le Tote’s website stayed up for a while but stopped shipping boxes. For a long time, subscribers couldn’t log in or reactivate their rentals.
– A potential return:
The company hasn’t fully shut down its online presence—there have been signs of attempts to revive the rental model, but no clear relaunch plan has stuck.
– Ownership shuffle:
Saadia Group, which bought Lord & Taylor’s brand name, also took on Le Tote’s assets during bankruptcy. Whether Saadia will try to bring the rental service back in a big way remains unclear.
Why Did Le Tote Fail?
Le Tote’s fall wasn’t just about COVID-19, though the pandemic certainly delivered the knockout punch. Here are the key reasons it struggled:
Risky expansion:
The Lord & Taylor acquisition saddled Le Tote with big, expensive legacy stores at exactly the wrong time.
Heavy competition:
Rent the Runway and other rental startups were already dominant in the space. Le Tote had a niche, but not a big enough edge to fend off better-funded rivals.
Changing shopper habits:
As people shifted toward casual, remote work, the need for a constant stream of “work to weekend” outfits dropped.
Cash flow problems:
Subscription models are great when membership is growing. But when customers pause or cancel—and costs stay high—cash flow dries up fast.
A pandemic no one saw coming:
When the world stopped going out, demand for “wear it once, send it back” fashion evaporated overnight.
What’s Next for Clothing Rentals?
Even though Le Tote’s future is murky, the idea of renting clothes isn’t going away.
– Rent the Runway’s success:
Rent the Runway pivoted more quickly, expanding its casual and loungewear offerings. It remains the biggest name in rentals.
– Niche rental services:
Smaller rental services now focus on maternity wear, kids’ clothes, designer handbags, and special-occasion looks.
– Secondhand over rental:
Many shoppers now choose secondhand shopping instead—buying gently used clothes through sites like Poshmark or ThredUp instead of renting.
– Sustainability trend:
Rental still fits well with the growing push for sustainability and conscious consumption. But any rental company needs to balance that promise with clear value and convenience.
Table of Contents
FAQs: What People Still Ask About Le Tote
When was Le Tote founded?
Le Tote started in 2012 in San Francisco.
What did Le Tote do?
Le Tote offered a monthly clothing rental subscription where customers got a box of everyday outfits they could wear and return as often as they liked.
Why did Le Tote buy Lord & Taylor?
Le Tote hoped to combine its rental model with Lord & Taylor’s physical stores to create rental showrooms and revive the department store’s foot traffic.
Did Le Tote go bankrupt?
Yes. In August 2020, Le Tote and Lord & Taylor both filed for bankruptcy after pandemic shutdowns crushed sales.
Is Le Tote still open?
Its website still exists, but the rental service is not fully active. There’s been no big relaunch yet.
Who owns Le Tote now?
Saadia Group owns the brand assets of both Le Tote and Lord & Taylor.
Will Le Tote come back?
It’s possible the brand could return in a new form, but there’s no official relaunch date.
Key Lessons from Le Tote’s Story
Le Tote’s rise and fall shows how quickly retail trends can change—and how even smart ideas can fail if the timing isn’t right.
– Don’t bet everything on a risky buyout:
Acquiring a big, struggling legacy retailer can backfire fast—especially if you can’t support the cost.
– Always watch changing trends:
Le Tote focused on office-friendly clothes at a time when remote work was becoming the norm.
– Stay flexible:
Brands that pivot fast when crises hit stand a better chance of surviving.
– Know your edge:
In a crowded rental market, Le Tote didn’t carve out enough of a difference to hold off bigger rivals.
Final Thoughts: Will We Rent Our Wardrobes Again?
Le Tote was ahead of its time—and maybe a bit unlucky. The idea of renting clothes still makes sense for many shoppers who want variety without waste. But making it work at scale is harder than it sounds.
Today’s shoppers want convenience, great value, sustainability, and style that matches their lives. If Le Tote or another company figures out how to balance all four, renting clothes could easily come back in a big way.
In the meantime, Le Tote’s story is a good reminder that retail innovation takes more than a fresh idea. It takes timing, execution, financial discipline—and a little luck.
Did you ever try Le Tote? Would you rent your wardrobe again if it came back? Share your thoughts—I’d love to hear your take on what makes clothing rental work or flop.