John Lewis’s plans for a £150m redevelopment of its Oxford Street flagship have been delayed due to doubts around the property market.
Last year, property developer Hines and Korea’s National Pension Services were chosen as the preferred bidders for the project, which would involve the conversion of the store’s upper levels into offices.
However, a fall in property values and increasing interest rates have stifled the deal, The Times reports.
Despite this, John Lewis are believed to still be in contact with Hines and other potential bidders regarding the project.
The building on London’s prime retail street was expected to be worth around £750m once the offices were completed.
Earlier this year, the retailer announced it would be reducing the size of its head office, moving from its 220,000 sq ft home on Victoria Street to a 108,000 sq ft unit in Pimlico.
The news follows M&S’s announcement that it has launched a legal challenge against the Government’s decision to reject its redevelopment plans for its nearby flagship store on Oxford Street.