Lord & Taylor is selling its flagship New York City store for $850 million, a move that will convert most of the landmark building into office space and the headquarters of real estate startup WeWork Cos. The transaction, part of an effort by Lord & Taylor parent Hudson’s Bay Co. to reduce its debt, is the most dramatic sign of how even grand stores are giving way to more profitable uses. As more shopping shifts online and fewer people visit stores, retailers from Macy’s Inc. to Sears Holdings Corp. are trying to sell...
Workspace provider WeWork is acquiring Lord & Taylor's flagship New York store in an $850m deal. WeWork will convert most of the 12-storey building on Fifth Avenue into office space and also house its head office there. Lord & Taylor will continue to run a small shop at the site, where it has traded since 1914. The radical downsizing is an attempt by the chain's Canadian owner, Hudson's Bay, to reduce debt. WeWork, which rents out office space to business clients, was founded seven years ago and is valued at more than $20bn.