The owners of Wales' largest family-run department store in the heart of Cardiff are in talks to sell the site.
The store has been trading for over a century
Letters have been sent to workers at the David Morgan store in The Hayes telling them of plans to close the property.
The shop has been trading in Cardiff for more than 120 years and employs about 500 full and part-time staff.
A spokesman said they were in talks with a London financial institution but an announcement on the site's future was not expected before Christmas.
"No decisions have been made," he said.
"We are in negotiations with a city institution to sell the property.
"As far as I am concerned it is business as usual nothing has changed it is a very busy time of year for us and we are here to serve our customers.
"We are a family-run business and we like to keep our staff informed of what is going on.
"We do not know what will happen, that is in the hands of the city institution but it will not be this year."
The independent store is still owned and managed by the descendants of the founder, David Morgan.
Born near Brecon in 1833, Mr Morgan traded in Pontlottyn in the Rhymney Valley for 21 years before moving to the Hayes in 1879.
The site covers 130,000 sq ft of trading space and sells a variety of goods from bridal wear to soft furnishings.
The store is owned by the holding company Deymel Investments.
A series of shops in arcades running beneath and alongside the store are also owned by the company.
It is understood that if the buyout went ahead the arcades would be sold along with the store.
Workers in David Morgan were called to a meeting on Tuesday to discuss the store's future.
Staff were told that even if the sale was concluded in the new year the earliest the store would close would be January 2005.
"We are asking members of the National Assembly to put pressure in the planning authorities to retain David Morgan as a department store," said Plaid Cymru AM Owen John Thomas.
"It is a vital part of the city and its character."
Last week it was announced the Penarth branches of David Morgan was being bought by rival department store Dan Evans of Barry.