John Lewis to pay Sheffield council £5m for closing store

John Lewis announced the closure of its Barker's Pool store in March

Retail giant John Lewis has agreed to pay a council £5m for closing one of its department stores just months after signing a new 20-year lease.

In March, the firm announced that several department stores would close, including its site in Barker's Pool, Sheffield.

The city's council said the deal meant it had full ownership of the building "with no cost impact to the city".

It added that the money will go towards a planned redevelopment of the site.

Once the home of retailer Cole Brothers, the department store had been at the centre of the city's retail offering since the early 1960s.

John Lewis surrendered its old lease for the building to the council for £3m in 2020 and was granted a new 20-year term at a lower rent in return.

The store was at the heart of a planned redevelopment of the city centre

However, according to a council report, negotiations with the firm had now culminated in a proposal for the retail giant "to surrender their lease and be released from all obligations for the sum of £5m".

"On completion, the council will have received a financial settlement on a key site in the centre of Sheffield in excess of what it paid John Lewis to buy them out of their old lease," it said.

Councillor Mazher Iqbal, executive member for development, culture and regeneration at the city council, said it was "great news" and the future of the site was "now in the hands of Sheffield".

The retailer has previously said it had been determined to play a role in the city centre's regeneration, but the effects of the Covid-19 pandemic and the acceleration of the switch to online shopping were to blame for the closure decision.

A public consultation on the building's future use is due to start early in 2022.

Follow BBC Yorkshire on Facebook, Twitter and Instagram. Send your story ideas to [e-mail] or send video here.