Ikea to open flagship Oxford Street store at site of shuttered Topshop

Ikea is to buy the flagship Oxford Circus retail outlet occupied by Topshop in a £385m deal subsequent the collapse of Sir Philip Green’s retail empire.

It will give the Swedish home furniture chain a existence at the coronary heart of London’s procuring district amid booming demand from customers for its merchandise because lockdown was lifted.

Topshop fell into administration final November after several years of declining gross sales. The manufacturer was subsequently bought by Asos, which declared ideas to dispose of all physical stores.  

The deal is not the to start with time the Swedish home furniture chain has tried to go to Oxford Circus. Ikea formerly sought to get above British Home Stores’ location on Oxford Street, and had also enquired about a internet site at a nearby  redevelopment on Cavendish Sq..

The deal provides Topshop’s 56-calendar year tenancy on the avenue to an conclusion. It moved to Oxford Circus in 1965. 

Directors took above the company which owns the internet site final November following the collapse of Sir Philip’s Arcadia vogue empire. They explored both sale and leasing selection prior to the deal with Ikea was agreed, in accordance to React News.

Mike Ashley’s Frasers Team had also been interested in the internet site. But talks stalled because  Nike, an current tenant in the developing which will hold its retail outlet open, has a clause in its lease prohibiting a competitor from operating in the previous Topshop area. 

Excellent Portland Estates, Criterion Capital and Ramsbury all enquired about the internet site with no talks progressing to a severe place.

Returns from the sale will be employed to reimburse senior loan provider Apollo Capital Administration. Leftover money will go intp plugging the £510m deficit in Arcadia’s pension plan. 

The deal for the Oxford Circus retail outlet follows an agreement with US true estate large Trammell Crow for Arcadia’s previous warehouse in Milton Keynes, as several Arcadia belongings are on the marketplace. 

Ikea did not respond to a ask for for remark.