Fenwick is to close its iconic Bond Street store after 130 years as the retailer seeks to shrink its physical footprint in a bid to cut costs.
The department store has agreed to sell the five storey building to property firm Lazari Investments for a price tag understood to be north of £400 million. The store is set to remain open until 2024.
Simon Calver, Fenwick’s chairman, told the Times newspaper: “Decisions like this are always difficult but it is absolutely the right thing for the business.
“This was about what we need to do to ensure the business is on a really strong financial footing and can survive for another 140 years.”
The move would see Fenwick’s physical presence cut to eight department stores and follows a number of major closures over the past decade including in Leicester and Windsor. The firm said it didn’t have plans for further store closures and would seek to redeploy Bond Street staff at other stores where possible.
It comes afterFenwick submitted plans to turn some of the floorspace at its Bond Streetsite into offices as part of a plan to weather the crisis on the high street.
The proposal by Mayfair institution Fenwick, a retail flagship on New Bond Street since 1891, was given the green light after Westminster council agreed shops are facing “exceptional” challenges.
The Newcastle-based business posted sales of £240 million for the year to January 2022, but suffered a £5 million pre-tax loss as Covid restrictions forced it to temporarily close its stores. Fenwick opened an online store in 2019.
The retailer was set up by the Fenwick family in 1882 and continues to be owned by family members.
