Kendals in Manchester city center has been saved from closure after the landlord has agreed new rates with owner Mike Ashley.
House of Fraser confirmed Friday afternoon that the flagship would continue to trade – also secure the job of 568 people who work there.
It is understood that the Manchester Council has conveyed between Mike Ashley and the landlords to reduce the sky-high rent of £ 4.36million per year.
A council spokesman said: "Manchester City Council was instrumental in working positively with House of Fraser and landlord to ensure the future of this store.
" 568 jobs are saved and one of the region's most iconic shopping malls lives on. "
Sir Richard Leese, chairman of the Manchester City Council, said:" Today's announcement is amazing news for the city and I'm proud that the council has been able to play a constructive role in storing a real Manchester icon and hundreds of jobs.
"I would like to thank all involved for their positive involvement in this process."
Sports Direct Billionaire Mike Ashley, who bought House of Fraser for £ 90m in August, added: "This shows that when landlords, local authorities and dealers work together, the results can be outstanding.
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"When we work together, we can make a real difference on the high street."
Ram Rasiah, who represented the House of Fraser during negotiations, described the outcome as a "significant deal" for Manchester.
The development marks a dramatic turnaround after the staff were told on October 19th that the store was due to close in January.
Customers arr I was that morning to find the doors closed.
The men were then the first to report the news that the famous warehouse was due to close the doors after 180 years of trade.
It ran a huge response from customers and leaders in the region who promised to do everything they could to keep Kendals, as it has always been known, opened.
Among them were Manchester councilors Pat Karney and William Jeavons.
Tonight, Karney wrote tweeted: "Wow. Just heard. Kendals Saved.560 jobs saved. Happy Christmas Kendals Staff.
" We have talked to so many distraught staff in recent weeks.
"We are so happy for all the employees who now have a merry Christmas. Bring Kendal's name."
Just last week the Santa Cave had opened at Kendals for that which was expected to be the last time.
Major leader Anne Latham said, "For years, generations have visited the famous Kendal Grotto, and this year there is no exception."
"For a last time before we close together and have an experience to remember.
"See Santa in his cave, meet his playful elves, take your photo or why not join us on a Saturday and Sunday for breakfast with Santa Claus."
According to Land Registry registries, Kendals is owned by Deansgate Jersey No.1 Ltd, a stock company based in Jersey.
Landmark II List, which was listed in 2016 by the owner, described at that time as a private investor for NOK 84.5 million.
House of Fraser was reported when he had 33 years left on the lease with an annual rent of £ 4.36m.
Talked Oliver Foster, Investment Director at Real Estate Broker Savills, described as a "rare opportunity to buy a first-class brand store" and added his expected "long unutilized rental period to the House of Fraser and attractive return for to generate high interests among investors based in both the United Kingdom and abroad. "
In August, the BBC reported that some Fraser homeowners were asked to sign leases corresponding to 5 percent of the store's sales.
The company reported that the agreement would mean most landlords would end up taking Inancial hit but that it was better than closing stores.
In September, Mike Ashley said that Altrincham's House of Fraser store had been saved from closure.
Ashley struck a last minute deal with the property's landlord to ensure the store can continue shopping.
The Stamford Quarter Store – known as Rackhams – was earmarked for closure in June when the chain owners announced a "restructuring proposal".
At the time it was reported, the move would result in about 45
Rackhams was one of the 31 House of Fraser stores that were closed, including the Oxford Street department in London.
But rescue agreements were beaten to save 20 of the 31 closed-bodied stores and saved about 3500 jobs.