WeWork acquires Lord & Taylor’s NYC flagship store for $850m

Hudson’s Bay Co. has sold Lord & Taylor’s flagship store on Fifth Avenue in Manhattan for $850 million to WeWork.

WeWork will convert most of the landmark building into office space and the property will serve as its headquarters.

Lord & Taylor is part of the troubled Hudson’s Bay Co., a Canadian department-store empire that includes Saks Fifth Avenue as well as other brands. Lord & Taylor has plans for a smaller store at the Fifth Avenue location.

The transaction is part of Hudson’s Bay Co.’s efforts to reduce its debt and response to the growing e-commerce competition, according to The Wall Street Journal. Hudson’s Bay Co. had negative free cash flow for the past two fiscal years and is expected to see more of the same for the next two, reported a Bloomberg article.

WeWork has expanded from two locations in New York City when it was founded in 2010 to more than 160 locations in 52 cities this year.