Liberty of London will leave its Sloane Street store after receiving an unsolicited offer from a European fashion brand.
Staff at the store plus stock and fittings will be transferred to its iconic Regent Street store.
Liberty chairman Richard Balfour-Lynn said: “We received a fabulous offer for our Sloane Street lease completely out of the blue. The incoming tenant offered us a £700,000 cash premium for the lease, which we will use to further develop the increasingly successful Liberty of London global luxury label.”
In addition to the cash offer, Liberty said it would make an annual cost saving of around £500,000.
Since it instigated its “Renaissance of Liberty” strategy last February, including a refurbishment of its flagship Regent Street store, Liberty has achieved double-digit sales growth and said that the number of international outlets selling its Liberty of London range of fashion and accessories has continued apace.
However, the retailer said in January this year that sales at its standalone Liberty of London shop on Sloane Street, which only opened in June last year, were “slower than anticipated”.
Balfour-Lynn added: “As a result of our expanding market penetration, both in the UK and abroad, we are now in a series of discussions with major international companies that will provide exciting branding collaboration and distribution opportunities through an increasing number of commercial networks. We are confident these will lead to increased profile and profitability for Liberty of London.”