Fenwick, one of London's iconic department stores, will shut the doors of its five-story Central London location in 2024, after a century of operation. The retailer has been in business since 1882, when John James Fenwick purchased a doctor's house at 5 Northumberland Street in Newcastle upon Tyne for £181 and 4 shillings, converting the property into JJ Fenwick, Mantle Maker, and Furrier. The family opened the Bond Street store in 1891.

In a statement, the company explained: "Amid the turbulent economic environment, fresh capital investment is required in order to return the business to profitable growth."

Lazari Investment has bought the Bond Street store, along with the adjoining property, for a reported cost of £430 million, with plans to convert the building into a mixed-use development. The sale comes two months after the retailer published its latest financials, covering the year ended January 28. The retailer saw operating losses of £45 million due to COVID-19 closures bouncing back, with gross sales for 2022 sitting at £240.2 million, a 71% increase on the previous year with losses dropping to £18.2 million.

CEO John Edgar said, "The capital injection from this transaction will put Fenwick in a much stronger position to grow its online business and concentrate on cementing our position as the home of excellent hospitality and a premium retail edit. After considering a range of different options, it was decided that selling the Bond Street property is the right course of action to set us on the strongest possible footing for the future."

The sale will allow the retailer to invest in its other stores, repay debt, and firm up a strong balance sheet for the business, which continues to own most of its properties.

Calver continued, "This year, Fenwick marked 140 years as a successful British retailer, and this deal will enable the business to continue to serve communities in stores and online for many years to come. The sale has been a difficult decision for the Fenwick family, who are committed to providing the business with the means to thrive for the long term. Their support will enable the next stage of the journey for the Fenwick family business."

Fenwick has reduced its store count over the past decade; however, the retailer said there were no plans for further store closures. About 200 people will be impacted by the closure; 100 function staff will relocate to a new office while shop floor employees will be redeployed to other locations over the next 14 months, where possible.

After the closure, the Newcastle-based retailer will have eight remaining stores in the UK, including its flagship in Newcastle, as well as stores in Kingston, Brent Cross, Colchester, Canterbury, Bracknell, Tunbridge Wells, and York, alongside an online platform.