Debenhams is relocating its head office on London’s Regent’s Place to its flagship store on Oxford Street later this year, as part of its restructuring programme.
Real estate firm British Land has agreed to surrender the lease on the department store chain’s London support centre at Regent’s Place on 1 November. It had been due to run to 2038. The space has been re-let to Facebook.
Debenhams will return its central functions to the upper floors of its London flagship on Oxford Street, where they will be closer to the business and to customers.
It has a lease that runs until 2039 and will trade on a footprint of 185,000 sq ft over five floors once the head office is relocated. It previously traded on a footprint of 250,000 sq ft over seven floors.
The head office was previously situated at the Oxford Street store until 2013.
The move is part of Debenhams’ cost-reduction drive, which is predicted to deliver annualised savings of £80m by the end of January 2020.
Sergio Bucher, chief executive of Debenhams, said: “This is another step in the delivery of Debenhams Redesigned, as we look to put the business on a firm financial and operational footing. Constructive negotiations with our landlords are a key part of this process. Moving back to Oxford Street will deliver a material saving in our annual rent bill and lease commitments. At the same time, our customers will continue to have the best of what we have to offer in a better-curated store still trading over five floors.”