Fenwick department store will close its 130-year-old store on New Bond Street in central London.
The store, along with the adjoining property, has been sold to Lazari Investments and will close in 2024.
The company said it would sell the site in order to fund significant investment in its online business and its other stores.
Simon Claver, Fenwick's chairman, said that the sale had been a difficult decision for the Fenwick family. Fenwick will be left with eight stores in the UK, including its flagship in Newcastle, York, Brent Cross, Colchester and Kingston.
A statement from the company stated that fresh capital investment is needed to return the business to profitable growth because of the turbulent economic environment. The company's leadership team is committed to providing the business with the means to thrive for the long term, according to Mr Claver. Investments will be made in stores across the country, including its Newcastle and Kingston branches.
David Silverman, Lazari Investment's director, said that their plans for the London site include creating a mixed use development.