House of Fraser’s flagship store on London’s Oxford Street has been saved from closure.

The popular store had been due to close under a House of Fraser company voluntary arrangement (CVA) announced in June.

This is the first deal to be agreed on since Mike Ashley's Sports Direct snapped up the department store group after it collapsed into administration.

James Keany, head of national agency at CBRE, the real estate services and investment firm which is advising Sports Direct on all property-related matters regarding HoF, said: “This deal only happened because all parties realised it was better to keep the store open and fully operational.

“It was a real case of landlord and tenant genuinely working together and at great speed. Everyone was sensible about the terms of the transaction.”

House of Fraser had recently agreed a so-called CVA with landlords to close half of stores, with 6,000 jobs in the firing line.

Public relations firm Keith Bishop Associates announced the deal saying it will create jobs and ensure that trade continues on London's popular street.

House of Fraser was bought out of administration by Mike Ashley’s Sports Direct earlier this year. Credit: Joe Giddens/PA

Michael Murray, Sports Direct’s head of elevation, suggested the speed with which the deal was struck showed a commitment to turn around the House of Fraser business.

He said: “We said we would keep as many stores open as possible, and in less than a week we have saved the biggest store.

“Oxford street was meant to close in January and now it’s safe, which is great news for all parties.

“Everyone must remember it was a bust business and we need landlords, councils and brands to pull together to save House of Fraser on the high street.”