On Tuesday morning, Hudson's Bay Company announced the sale of Lord & Taylor on Fifth Avenue in New York City.

In a series of transactions, HBC has sold the building on Fifth Avenue to WeWork Property Advisors for $1.075 billion.

Photo Credit: Google Maps

The transaction between HBC and WeWork is being described as a strategic relationship, where WeWork will begin to occupy more spaces in select areas of HBC department stores around the world. In return for the space, WeWork will aid in significantly reducing HBC's debt by $1 billion.

This transaction comes just days after HBC CEO, Gerald Storch, resigned. In a rapidly changing retail market, HBC has been working to keep up with the times by expanding in Europe and building strategic partnerships. Storch resigned after less than three years as CEO.

He is officially dissolved of his duties as CEO on November 1st, 2017.

"HBC has a long, successful history, with talented people, assets, geographic reach and digital infrastructure," stated Storch. "I have great confidence in the Company and the Executive Leadership Team's ability to take the right actions to position HBC for leadership in the retail industry as it evolves into the future."

Photo Credit: Storch AdvisorsCEO, Jerry Storch, resigned on October 20th, 2017.

He added that he's looking forward to returning to his advisory firm and working with a variety of different companies "during this transformational time for the retail industry."

The Company is working to recruit the next CEO through an executive search firm.

Until the next CEO is chosen, Richard Baker, will serve as interim CEO.

 "The Board and I are grateful for Jerry's contributions over the past three years," stated Baker. "The Board, Executive Leadership Team and I look forward to enhancing value for all of our shareholders now and over the long term."

In the past year, HBC shares have gone from 8.08 to 17.33. While there was a recent spike, HBC shares on the TSX were sitting at 11.98 by noon EDT on Tuesday.

Photo Credit: Google FinanceHBC shares were at 11.98 by Tuesday at 12:19 p.m. EDT.

Lord & Taylor is expected to continue operations into the 2018 holiday season. After that, the building is expected to be converted into a WeWork NYC headquarters.

Financing firm, Rhône Capital, has worked with WeWork and is aiding in the transaction between HBC and WeWork. To help with HBC's balance sheet, Rhône Capital, has invested $632 million into the Company.

WeWork will use spaces within certain HBC department stores in Toronto, Vancouver and Frankfurt.

Founded in New York City, WeWork has more than 150,000 members and more than 170 physical locations around the world. 

It also announced on Monday that it had bought the New York City-based coding program, Flatiron School.