Burberry has confirmed it will open a store in Manchester in March but it also plans to leave its London headquarters, in Haymarket, Piccadilly, in 2008, just five years after it spent millions turning the former shop into a showroom and offices
Staff will relocate from five offices into a new development in Westminster.
Burberry will also press ahead with the closure of a factory in Wales. The closure will incur a charge of about £5.2m for the current financial year.