Hudson's Bay sells Lord & Taylor NY building

Toronto

CANADIAN department store operator Hudson's Bay Co (HBC) agreed to sell its Lord & Taylor flagship building in New York for US$850 million to WeWork, in what may be a step towards easing tensions with activist investor Jonathan Litt.

Both HBC executive chairman Richard Baker and Mr Litt have made their mark as real estate investors, but now hold divergent views on the future of North America's oldest company, at a time when brick-and-mortar retailers are being challenged by nimble online operators.