Department store chain Fenwick has announced it will close its 130-year-old outlet on New Bond Street in central London after selling the building to property developers in a multimillion-pound deal.
The company stated that it would use proceeds from the sale to bankroll investments in its online business and other Fenwick stores around the country.
Fenwick has not confirmed the sale price, but it is understood the five-story store and an adjoining property on New Bond Street had a guide price of £430m. The department store will remain open until the start of 2024.
Fenwick has eight other stores across the UK in Newcastle, Kingston, Brent Cross, Colchester, Canterbury, Bracknell, Tunbridge Wells and York, alongside a growing online business.
The sale comes six weeks after Fenwick published its latest accounts, which showed the business was starting to recover from the effects of the pandemic. Its sales jumped 71% to £240m in the year to 28 January 2022, with operating losses more than halving from £45m to £18.3m. But amid the turbulent economic environment, the group said that fresh capital investment was required in order to return the business to profitable growth.
Major investments are planned for its flagship store in Newcastle and its shop in Kingston upon Thames. It will also invest in its growing digital presence in order to become a “leading online department store”. Other plans include repaying debt and strengthening its balance sheet.
Chief Executive 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.”
NAM Implications:
- Fortunate to have a New Bond Street location to sell.
- And the resulting cash injection will avoid having to borrow outside.
- So Fenwick is poised to move forward again.
- Ready for your fair share of sales & investment?
