Urban Outfitters Expands, Wins Legal Battle as Lord & Taylor, Le Tote Face Bankruptcy
In a series of corporate developments, Urban Outfitters Inc. has expanded its offerings and won a legal victory, while two prominent retail names, Lord & Taylor and Le Tote, faced challenges and bankruptcy.
Urban Outfitters, the parent company of brands like Urban Outfitters, Anthropologie, and Free People, launched Nuuly, a fashion rental service, in 2019. This service allows subscribers to rent clothing and accessories from both URBN's own brands and third-party providers. To support Nuuly's growth, Urban Outfitters opened a new fulfillment center in Missouri, expected to triple its active subscriber base and create 750 jobs.
In 2020, Urban Outfitters partnered with plus-size direct-to-consumer brand Eloquii to diversify its product offerings. This collaboration allowed Urban Outfitters to cater to a wider range of customers. Meanwhile, Urban Outfitters also faced a legal battle when Le Tote, an apparel rental service, filed a lawsuit alleging trade secrets violations and breach of contract. However, a federal judge ruled in favor of Urban Outfitters following a jury verdict.
In the same year, both Lord & Taylor and Le Tote faced financial difficulties. Le Tote, which had acquired Lord & Taylor in 2019, filed for bankruptcy, along with Lord & Taylor. The Saadia Group later bought Lord & Taylor in 2021.
Urban Outfitters has demonstrated growth and expansion through its Nuuly service and strategic partnerships. Despite facing a legal challenge, the company emerged victorious. Meanwhile, the retail landscape has seen significant changes, with Lord & Taylor and Le Tote both filing for bankruptcy and Lord & Taylor being acquired by the Saadia Group.
