Ikea is understood to have entered into an agreement to purchase 214 Oxford Street for £385m.

The store space was formerly home to the flagship store of the jewel in Sir Philip Green’s Arcadia empire, Topshop, measuring 100,000 sq ft.

Ikea is also understood to have agreed to acquire the 73,000 sq ft NikeTown and a 4,700 sq ft Vans shop, both adjacent to the Topshop space.

The Swedish furniture retailer is reportedly expected to pay in the region of £385m for the three stores, which would mark another step in its strategy to trial new store formats.

Administrators from KPMG were appointed earlier this year to Redcastle, the special-purpose vehicle that owns the asset, after the collapse of Arcadia.

The store has also seen interest from Stefan Persson, the Swedish billionaire majority shareholder of H&M, and Mike Ashley’s Frasers Group, which withdrew from the process when it became clear that Nike had a clause in its lease preventing a competing retailer from operating there. 

Ikea did not confirm the reports on this.

An IKEA UK & Ireland spokesperson 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 & 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.”

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