House of Fraser says the announcement it was leaving the Grosvenor Centre, putting 60 jobs at risk, came after talks with Legal & General to extend its lease failed.
It was announced this morning that the flagship store, formerly known as Beatties, will be replaced by Primark and Next, at some point over the next 18 months.
Following a statement released to the Chronicle & Echo, it appears that House of Fraser did not want to leave the town.
Legal & General said both Next and Primark were willing to commit to a long-term lease, and House of Fraser were not.
A House of Fraser spokesman said: “It is with regret that House of Fraser Northampton will cease to trade.
“Despite detailed negotiations with our landlords we were unfortunately unable to influence the outcome and the current property lease will come to an end early.
“We have notified staff members and will make every effort to redeploy them within House of Fraser wherever possible. We will also be working with local businesses on this matter.
“It is anticipated that the store will cease to trade by the end of March 2014.”
Simon Russian, head of retail development at Legal & General Property, said: “House of Fraser’s lease break comes up in February 2014 and we feel that it is important for Northampton that we let space to complementary retailers that can commit to the centre for the longer term, which, unlike House of Fraser, both Primark and Next are willing to do.
“Primark and Next are both very popular retailers and we are confident from experience elsewhere that they will act as a major draw for visitors to the Grosvenor Centre, updating its feel alongside our refurbishment proposals and boosting its footfall.
“Committing to the town centre for the long term, as a result of this move both retailers will be able to operate modern stores and significantly expand the range of goods on offer to the people of Northampton.”