// Ikea will buy Topshop’s former flagship Oxford Circus store
// Proceeds from the sale will be used to pay Topshop’s former parent company Arcadia
// The deal is worth £385m
Ikea has reportedly confirmed it will purchase Topshop’s former flagship Oxford Circus store in a £385 million deal.
Proceeds from the sale will be used to pay Topshop’s former parent company Arcadia Group’s creditors and deficits in the company pension fund, The Telegraph reported.
Sir Philip Green’s Arcadia collapsed last November, which resulted in Asos buying its brands – including its flagship brand Topshop – and announced plans to dispose of all physical stores.
The deal means Ikea will now have a presence at the heart of London’s shopping district.
Ikea previously sought to take over BHS’ location on Oxford Street, and had also enquired about a site at a nearby redevelopment on Cavendish Square.
The deal brings Topshop’s 56-year tenancy on the street to an end. It moved to Oxford Circus in 1965.
Returns from the sale will be used to reimburse senior lender Apollo Capital Management.
Leftover funds will go into plugging the £510 million deficit in Arcadia’s pension scheme.
The deal for the Oxford Circus store follows an agreement with US real estate giant Trammell Crow for Arcadia’s former warehouse in Milton Keynes, as numerous Arcadia assets are on the market.