Iconic department store Liberty has closed its standalone Liberty of London shop on Sloane Street 12 months after it opened, after receiving an offer for the lease.
Liberty has agreed to sell lease of the 1,800sq ft store, which sells Liberty’s own label product, after receiving a unsolicited offer from an unnamed European fashion brand.
The Liberty of London shop has closed and the stock, and staff will transfer to Liberty’s Great Marlborough Street flagship in London.
Liberty said that putting the Liberty of London retail operation into its flagship store would save around £500,000 a year.
In April the company partly blamed its increased losses on its investment in but the subsequent under performance of the Liberty of London standalone store. The company lost £7 million on sales of £50.2m in the year to December 31.
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.”
Liberty said that the group has experienced a double-digit increase in sales over the past five months, since the refurbishment of the Great Marlborough Street shop.
Balfour-Lynn added that Liberty was also in talks with international retailers about expanding the distribution of its Liberty of London product abroad.
The Liberty of London store opened in June last year.