HOUSE of Fraser is set to close its iconic Kendals store in Manchester in the new year.

It is believed that staff at the Deansgate store received the news after arriving at work this morning.

A sign on the doors this morning read: "Due to unforeseen circumstances the store will not open until 10.30am. We apologise for any inconvenience this will cause."

A spokesman for House of Fraser said: "We have suggested various options to the landlord that would have enabled us to save the store in Manchester. Sadly, these have been declined. We are now in consultation with staff about the fact that the store faces closure in the New Year."

Sports Direct tycoon Mike Ashley recently bought the department store chain out of administration for £90 million.

Several stores have already been forced to close, but the Manchester store had escaped the axe until now.