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S Franses, which also houses a tapestry archive, has operated from the gallery for more than 25 years. Its 15 year lease came to an end last year and landlord the Cavendish Hotel, run by The Ascott Limited which is a subsidiary of Singapore’s CapitaLand, wants to redevelop the gallery into two shops.

Originally Cavendish submitted a planning application to change the gallery but it subsequently withdrew this application after more than 50 objections.

The case, which is due to conclude on Friday, is being held in the Royal Courts of Justice Central London County Court.

The case centres on whether under the Landlord and Tenant Act a request for a new lease can be refused.

S Franses hopes Westminster City Council’s new planning policy, called Special Policy Areas which came into effect last year, will protect it. The policy gives planning protection for certain traditional businesses – including tailors and art galleries – in the face of redevelopment in areas such as Cork Street, Savile Row, and St James’s.

A spokeswoman for Ascott said it cannot comment on the case until the litigation has been concluded but confirmed S Franses’s lease came to an end and an application for renewal is the subject of court proceedings.