Gieves blames the economy for closure of city centre store

The company said it decided not to renew its lease at the Victoria Quarter where it has been based since 1999.

Beauty brand Liz Earle is due to open in its place on Queen Victoria Street in November.

In a statement, Gieves and Hawkes, which also has a shop at York Designer Outlet, said: "The reasoning behind the decision to close is merely a response to economic trading. As the lease for the retail store was up for renewal the decision was made after a recent review on strategy that it was not viable to stay open in Leeds."

The company praised the team who worked in the store and thanked them for their "hard work and support". It added: "Unfortunately, at this moment in time we will not be relocating within Leeds."

According to its latest figures for the year ended December 26 2009, the company, which is owned by Wing Tai Properties, made a pre-tax loss of 2.7m on a turnover of 16.7m compared to a loss of 1.3m on a 17.1m turnover the previous year.

Its annual report, filed at Companies House, said 2009 was a "challenging" year for Gieves and Hawkes.

The group decided to scale back its less profitable concessions to concentrate on standalone stores. It also reduced the amount of markdown and promotional discounts given throughout the year and decided to develop its brand in the Far East.