Hudson's Bay Company (TSE: HBC), the Canadian retail business group and department store chain owner, sealed the deal to sell flash sale business Gilt Groupe to Rue La La for less than $100 million. Hudson's Bay had acquired Gilt Groupe for $250 million a mere two years ago. Gilt, which was once valued at more than $1 billion, has seen its value dwindle as the enthusiasm tied to flash sales sites continues to wane.

Rue La La plans to hire 150 employees to run the Gilt business following the close of the deal, which is expected at the end of July.

Hudson's Bay shares rose before the sale was announced, jumping 7.2% to C $10.62, the biggest one-day gain since November.

The move is the first major decision by new Chief Executive Officer Helena Foulkes. Foulkes is also taking other measures to turn around the company that include selling the landmark Lord & Taylor building in Manhattan, unloading a minority stake to a private equity firm to reduce debt, and establishing partnerships with Walmart (WMT  ) and WeWork Cos. The retailer is due to report quarterly earnings Tuesday morning.

Hudson's Bay failed to revive Gilt even after combining inventories with its other discount business, Saks OFF 5TH. It bought Gilt in 2016, but by the end of fiscal 2017, it wrote off $63 million "due to further deterioration in operating results."

"Hudson's Bay has taken steps to streamline and improve its business through the announced divestiture of Gilt and its reduction of square footage at Lord & Taylor," said Christina Boni, VP and Senior Credit Officer of Moody's. "These efforts are expected improve profitability and bring a better balance between its brick-and-mortar and digital assets."

The move signals Hudson's Bay's willingness under Foulkes to exit from money-losing businesses while its share price is under pressure and an activist investor is calling for the company to better monetize its real estate. HBC's net loss widened to $242.8 million in Q1 2018, with the retailer noting that comparable sales declined 0.7% from a year ago, while total revenue only jumped 1%.

In 2017, before Foulkes' appointment to the CEO position, HBC rid itself of 2,000 jobs, reorganized management, and centralized e-Commerce operations under a plan to win back customers.

A spokesperson for Hudson's Bay added in a statement that it will be closing a total of 10 Lord & Taylor stores and reiterated that the Fifth Avenue store would not close until early 2019, once the holiday shopping season ends.

Chartered in 1670, HBC is the oldest incorporated joint-stock merchandising company in North America, and used to specialize in fur trades. NRDC Equity Partners, an American private investment firm, bought the company in 2008. Whether HBC can remain relevant remains to be seen. Like many other brick-and-mortar retailers, the rise of Amazon (AMZN  ) and online commerce has hurt HBC.