// Chanel snaps up London Bond Street store following lengthy sales process
// The deal was agreed last week despite a decline in sales and shopper numbers in the area
Chanel has reportedly bought its London flagship store for £310 million despite weak footfall levels in the West End district.
The Bond Street store has been snapped up for £70 million more than the initial £240 million asking price, The Times reported.
The deal was agreed last week despite a decline in sales and shopper numbers since the start of the Covid-19 pandemic.
The store sells the brand’s clothing, fine jewellery and beauty products on three floors, with VIP changing rooms.
The purchase comes months after Chanel borrowed £600 million from the Bank of England’s emergency coronavirus lending scheme.
The Covid Corporate Financing Facility was created to support viable large companies whose revenues have plummeted.
According to the Bank, businesses can use the scheme only if they “make a material contribution to the UK economy”.
Chanel’s global headquarters is based in the UK and employs 1600 people.
Following the purchase, the French luxury retailer has fought off competition from rivals including the Abu Dhabi royal family and private investors from Hong Kong, the US and central Europe.