Liberty confirmed this week that it is considering selling the freehold of its iconic flagship store on London’s Great Marlborough Street.

Liberty said in a stock exchange announcement that investors are circling the luxury department store’s iconic Tudor-style building with a view to leasing it back to the company.

Liberty, which has been reviewing the business and considering a range of options to drive growth - which is understood to include a possible sale of the business - said that should a sale of the freehold be agreed, it would continue to operate the retail business as normal.

The retailer has appointed property agency Knight Frank to sound out interest and it is understood that Knight Frank has put a £40m price tag on the building.

Liberty, which is 68%-owned by MWB Group Holdings, added that a number of parties had expressed an interest in acquiring the freehold of the building, which “may lead to an acceptable offer being made”.

In January, Liberty reported sales for the year to December 2009 rose 20% and that the flagship store alone generated a 16% jump in sales.