House of Fraser is to stay in the iconic Kendals building as the owner says a huge refurb will not start for at least another year, the Manchester Evening News can reveal.
Investec, an international banking giant, put forward plans to turn the beloved Grade-II listed building on Deansgate into offices which were approved last summer.
The ambitious project includes building a central atrium, creating new entrances at the rear, replacing the distinctive glass blocks to allow more light in, and adding a roof extension.
The work is expected to take three years and will also see the demolition of the King Street West multi-storey car park and adjoining Fraser building to be replaced by a 14-storey office block and extended public realm.
In a press release issued last February, Investec said it expected work to start at the beginning of 2022.
But as of this month, all of the retailers effected by the scheme, including House of Fraser, remain open.
Andrew Webster, Development Manager for Investec, told the M.E.N the refurb plans are still going ahead but that House of Fraser will stay as a tenant for now on a rolling six-month lease.
"It would be pointless having an empty building, that wouldn't be good for Manchester," he said.
Asked when the refurb is now expected to start, Mr Webster said: "We're hoping in the next year or so, but it's a large scheme to put together.
"There are pressures on construction... we've got to work this through and we're doing that.
"We're talking to several tier one contractors who are interested in the scheme and would like to get involved in doing it."
Widespread material and labour shortages hit the construction industry hard during 2021 leading to delays on projects and some firms going bust.
While these problems have since eased, a new one is looming - soaring energy bills.
Rising gas prices could push up the cost of things like bricks and steel, reports suggest.
Meanwhile, the debate over how the office market will be effected by changes in working practices during the pandemic also continues.
The Prime Minister has been urging people to return to the office following the removal of work from home guidance last week.
But research suggests many companies and organisations are not asking people to come back full-time but are continuing with hybrid arrangements.
Most commentators think while this does not spell the end of the office, it will lead to firms changing their needs.
"What is coming out of the pandemic is... demand for office space has held up very well," Mr Webster insisted.
"What letting experts will tell you is there's a flight to quality, the rather tired buildings will be empty.
"People are looking to the new stuff, the refurbs.
"Employers are thinking 'we need a little bit more elbow room' more facilites, more is required.
"Investec need to get comfortable with what is really happening."
"Things are changing all the time.
"Investec are focused on doing what's right, this is probably the most iconic and most-loved building I've ever dealt with."
House of Fraser, which is thought to employ around 500 people in Kendals, did not respond to request for comment.
The retail chain is owned by Sports Direct after falling into administration in 2018.
Investec has said it will retain some retail space in the building on the ground, lower ground and possible first floors.
But in a document submitted as part of the planning application, Investec's architect's Sheppard Robson made clear there was no future for a department store in Kendals.
"The single retailer model such as House of Fraser has ceased to be a viable business and cannot provide a long term occupant and viable use for the building," the architect said.
"The decline of bricks and mortar retail has been well documented, and the building’s future use as a retail department store is not considered as viable in the context of the demonstrable change to high street trends in recent years.
"This has been particularly evidenced with the House of Fraser, where several of the floors have been mothballed even pre the current pandemic crisis, and which has now entered administration.
"Other department store chains are revisiting their assets to acknowledge the shift to increased online retailing for a range of goods typically found in larger department stores."
