House of Fraser had planned to stay in Darlington "for the foreseeable future" before the landlord reportedly terminated its lease.
Last week, parent company Frasers Group announced that the historic Binns store on High Row would be closing for good later this year.
The department store firm confirmed that the lease ends in December - with the last date of trading now set for the end of November, although an exact date is yet to be revealed.
The controversial closure sparked concerns from shoppers, who feared it could be the "nail in the coffin" for the town.
Some argued that this was "no surprise" and "inevitable" following the closure of House of Fraser in towns such as Middlesbrough, Sunderland, and Gateshead.
However, it has now emerged that House of Fraser had in fact planned to stay in its home on High Row "for the foreseeable future", according to a source.
Plans for the building remain unknown with the landlords, understood to be Arab investors, releasing no information on plans for the future.
Frasers Group previously said the landlord required the unit back before Christmas.
A spokesperson said: "Our customers can continue to shop the world’s most aspirational brands at Frasers.com, or access more brands from the Group’s ecosystem at Sports Direct Darlington and FLANNELS Darlington at the Cornmill Shopping Centre.
"We would like to take this opportunity to thank our staff for their hard work and dedication. Where possible, we are committed to finding new roles within the group for staff.”
Since the news of the closure broke earlier this month, speculation has been rife over whether another retail chain would take over.
Both Marks and Spencer and Primark have since come out and denied any plans to open a store within the Binns building despite rumours circulating online.
Last week, Darlington Council chief executive Ian Williams all but ruled out the council putting in a bid to buy the building.
Mr Williams said: “The towns fund is nearing completion and projects approved by the last government are progressing. In the towns fund there’s not a lot of money left in that for us.
“We haven’t got the luxury of using that to buy the buildings. As to whether there’s any future government money, who knows."
He added that the council would work with whoever purchases the building.
The D&S has contacted the agents of the landlord for comment but has not yet received a response.
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