Ikea has reportedly agreed to a £385 million deal to purchase the former Topshop Oxford Circus flagship store, following the collapse of Sir Philip Green's retail empire last year.
According to React News, the new location will give the Swedish furniture chain a presence at the heart of London's shopping district amid booming demand for its products since the start of the COVID-19 pandemic.
214 Oxford Street had been owned by Arcadia's property arm Redcastle, which was also placed into administration along with its retail brands at the end of November last year. Deloitte handled the administration of the brands, from Topshop to Wallis, which were all sold off without any stores.
The site was valued at more than £500 million two years ago and carries a hefty mortgage from US investor Apollo, who will be guaranteed more than £300 million from the sale. The remainder of any funds raised will be ploughed into Arcadia's pension fund to help fill the deficit, which currently stands at £185 million.
The furniture giant has also bought the 73,000 sq ft NikeTown and 4,700 sq ft Vans shops, adjacent to the former Topshop flagship. Frasers Group had also been interested in the site but pulled out due to a clause in Nike's lease prohibiting a competitor from operating in the space.
An Ikea UK and Ireland spokeswoman said: “We are on a journey to create a new Ikea that is even more affordable, accessible and sustainable. As part of our accessibility plans in the UK and Ireland, we are constantly looking for new ways to better meet our customers’ needs.
“This includes investing in our online offer, rebuilding and adapting existing Ikea stores, and exploring different formats and locations as part of a new city centre approach. We review our expansion strategy on an ongoing basis but have no plans to share at this time.”