Applicant, Drum Property Group would like to convert the Market Street building into a new restaurant/cafe and gym space.
Lancaster City Council have received an interest from the group who are proposing a ground floor café and restaurant units, and a first floor licensed premises and gym with associated external alterations to the Market Street elevations.
JDG Estate Agents in Lancaster have said they have been reliably informed that the BHS building is under offer.
They said on their Facebook page: “It will be great to see this flagship store back in use.”
The Lancaster BHS store shut for good in August 2016 after the company went into administration and failed to secure a new owner.
British Home Stores was founded in 1928 by a group of American entrepreneurs.
The company had 164 stores in the UK at the time it entered liquidation.
It was bought by Sir Philip Green in 2000 and became part of Green’s Arcadia Group in 2009.
In March 2015, BHS was sold to Retail Acquisitions Ltd for a nominal price of £1 and on April 25 it entered administration. All stores closed in August 2016.