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HBC, WeWork JV Strike Multinational Deal

Among other things, the multi-faceted arrangement entails WeWork leasing space at HBC stores; the retailer's Richard Baker calls it “a transformative partnership.”

By Paul Bubny | Updated on October 24, 2017

Interior of office space HBC chairman Richard Baker at WeWork’s current headquarters in New York City.

TORONTO and NEW YORK CITY—Saks Fifth Avenue owner HBC, recently targeted by activist investor Land and Buildings Investment Management, said Tuesday it had formed a strategic relationship with WeWork and Rhône Capital. The multi-faceted arrangement entails, among other things, Rhône making a $500-million investment in HBC and a joint venture of WeWork and Rhône acquiring the flagship Lord & Taylor building on Manhattan’s Fifth Avenue for $850 million.

Along with the Lord & Taylor property sale, the arrangement between HBC and WeWork will entail a reciprocal benefits program to enhance their respective product offerings. The program is expected to allow WeWork’s global membership to participate in exclusive HBC sales online and in store, and in turn, to give HBC customers access to WeWork’s We Membership platform.

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