Economy

Lord & Taylor sells its flagship Manhattan store to WeWork

Lord & Taylor sells its flagship Manhattan store to WeWork”

In another sign of the downfall of traditional retailing, a department store that had become a NY landmark has been sold to a company that plans to use it partly for shared office space.

Hudson's Bay Company is selling its Lord & Taylor property on New York's tony Fifth Avenue to WeWork for US$850 million as part of a flurry of deals. (TSX:HBC) is selling its Lord & Taylor Fifth Avenue building in NY to a joint venture between WeWork and Rhone Capital in a deal valued at $1.075 billion.

The flagship store at the building in NY would continue operations through the 2018 holiday season after which it will be converted into WeWork's headquarters, the company said on Tuesday.

HBC also said it has entered into agreements with WeWork to lease retail space within select HBC department stores, including the Queen Street location in Toronto, Granville Street in Vancouver and Galeria Kaufhof in Frankfurt, Germany. Ten of the building's 11 floors are now devoted to retail. But the Hudson's Bay deal with WeWork is a change in how retailers are trying to capitalize on their real estate. Big chains like Macy's had been under pressure from shareholders to get more value out of their real estate holdings. The abrupt departure of CEO Gerald Storch, announced on Friday, was an attempt by the board to "buy time and placate investors to address underperformance and undervaluation", he said. At the meeting, it plans to release proposals for Hudson's Bay, which could include removal of directors, Land & Buildings said.

HBC has repeatedly claimed its real estate is worth three times more than its current market cap.

"As we've said and done in the past multiple times, if there's an opportunity for someone to give us a very high valuation on one of our assets, we'd be willing to sell it", Richard Baker, HBC executive chairman and interim chief executive officer, told Reuters. The move is expected to take place after Christmas next year.



Like this

loading...
loading...

Latest


24 October 2017
Photographer Terry Richardson dropped by fashion magazines including Vogue and GQ
He has denied these allegations and stated that, he's "considerate and respectful" of his photography subjects. BuzzFeed News has contacted Richardson for comment.

24 October 2017
Citizens Financial Group (CFG) Receives News Impact Score of 0.40
The Company delivers a range of retail and commercial banking products and services to individuals, institutions and companies. On October 23 Barclays maintained a stock rating of "Equal-Weight" and raised the price expectation from $25.00 to $41.00.

24 October 2017
JP Morgan Downgrades Rating On Cleveland-Cliffs Inc. (CLF)
BidaskClub raised shares of Cliffs Natural Resources from a hold rating to a buy rating in a report on Thursday, July 6th. Axiom Securities reiterated a "sell" rating on shares of Cliffs Natural Resources in a report on Saturday, November 26th.

24 October 2017
Graphic Packaging Holding Company (GPK) Releases Quarterly Earnings Results, Meets Expectations
Volume levels waned and GPK actually managed a declined which translated to 1.91 million shares changing hands on the day. Royal Bank Of Canada initiated coverage on Graphic Packaging Holding in a research note on Friday, September 30th.

24 October 2017
Gears Of War 4's Xbox One X Enhancements Detailed
According to IGN , four Xbox 360 titles will have enhancements specifically for the new gaming system when it arrives next month. The three games that will get fresh enhancements include Halo 3, Fallout 3, Assassin's Creed, and Elder Scrolls IV: Oblivion.

24 October 2017
Infosys lowers revenue forecast for fiscal year
The most recent being in a letter, dated August 9, where Murthy is said to have raised questions over Sikka's leadership. The Bengaluru-based firm reported a 3.3 percent rise in its Q2 net profit from Rs 3,606 crore an year ago.

24 October 2017
Interpublic Group -5.4% as Q3 earnings miss, firm revises outlook
The firm has "Hold" rating by Cowen & Co given on Monday, July 17. (The) earned a daily sentiment score of 0.42 on Accern's scale. Jefferies Group LLC reiterated a "buy" rating and set a $26.00 price objective on shares of Interpublic Group of Companies, Inc.

24 October 2017
Hitman GOTY Edition Announced, Brings New Campaign, Challenges And More
Each features new "gameplay opportunities, disguises, characters, challenges, gameplay mechanics, AI behaviour and HUD elements". And starting (again) in November, we will reactivate Elusive Targets, this is something our players have been asking for.

24 October 2017
Karbonn Titanium Jumbo with 4000mAh battery launched in India for Rs 6490
The dual-sim handset offers Bluetooth, GPS, GSM (2G), WCDMA (3G), VoLTE (4G), Wi-Fi, Hotspot as connectivity options. While the MRP of the smartphone is mentioned as Rs. 7,490, the best buy price is quoted slightly lower at Rs. 6,490.

24 October 2017
Seagate Technology PLC (NASDAQ:STX) Expected To Report Earnings On Monday
COPYRIGHT VIOLATION NOTICE: This piece of content was originally published by TrueBlueTribune and is owned by of TrueBlueTribune. On 10/23/2017 announced a quarterly dividend of $0.63 with an ex dividend date of which will be payable on 12/20/2017.