Ikea is to buy the flagship Oxford Circus retailer occupied by Topshop in a £385m deal following the collapse of Sir Philip Green’s retail empire.
It will give the Swedish home furnishings chain a presence at the coronary heart of London’s buying district amid booming demand from customers for its items because lockdown was lifted.
Topshop fell into administration last November after a long time of declining sales. The brand name was subsequently purchased by Asos, which declared ideas to dispose of all physical stores.
The offer is not the initial time the Swedish household furniture chain has tried to move to Oxford Circus. Ikea formerly sought to take about British Home Stores’ place on Oxford Street, and experienced also enquired about a web-site at a nearby redevelopment on Cavendish Square.
The deal brings Topshop’s 56-12 months tenancy on the street to an close. It moved to Oxford Circus in 1965.
Directors took more than the company which owns the internet site past November after the collapse of Sir Philip’s Arcadia vogue empire. They explored both sale and leasing option prior to the offer with Ikea was agreed, in accordance to Respond News.
Mike Ashley’s Frasers Group had also been intrigued in the site. But talks stalled because Nike, an current tenant in the constructing which will continue to keep its store open, has a clause in its lease prohibiting a competitor from working in the previous Topshop room.
Great Portland Estates, Criterion Cash and Ramsbury all enquired about the web page with no talks progressing to a significant stage.
Returns from the sale will be made use of to reimburse senior financial institution Apollo Money Management. Leftover funds will go intp plugging the £510m deficit in Arcadia’s pension scheme.
The offer for the Oxford Circus store follows an arrangement with US serious estate big Trammell Crow for Arcadia’s former warehouse in Milton Keynes, as several Arcadia belongings are on the current market.
Ikea did not respond to a request for comment.