WeWork buys Lord & Taylor flagship store

Last Updated Oct 24, 2017 7:15 AM EDT

Lord & Taylor's flagship store in Manhattan is being sold for $850 million to WeWork, the office space sharing company.

The sale, announced Tuesday, is part of a plan by Canadian Hudson's Bay Co., which owns Lord & Taylor, to pare down debt and reinvigorate sales.

The building will be converted to WeWork's headquarters, with space carved out for a Lord & Taylor store, the companies said. Typical operations at the Lord & Taylor flagship store will continue through next year's holiday season.

Lord & Taylor is the oldest department store chain in the country, but like other department store, it has struggled to follow customers online. Many retailers this year have closed stores and sold off lucrative real estate and other assets.

On Friday, Hudson's Bay said that CEO Jerry Storch would step down at the end of the month.